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Richa Mishra

Asks for more dividend payout

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New Delhi, Jan. 22 The Finance Ministry is understood to have asked public sector undertakings to hike dividend payout to the Centre for the current fiscal.

A PSU official said that the Finance Ministry had recently convened a meeting with the PSUs for this purpose. The official declined to comment on the quantum of dividends sought by the Finance Ministry, but told Business Line that the Finance Ministry's move to seek more dividends from PSUs may strain the resources of these companies.

Hard hit

Among the oil majors, ONGC is likely to be hit hard. The company had recently declared record interim dividend, issued bonus shares, and taken on a subsidy burden (Rs 10,152 crore for the first half of the current fiscal). In December, ONGC declared a highest-ever interim dividend of Rs 3,850 crore - the Government's share came to (74.14 per cent) Rs 2,854 crore. The company had declared an interim dividend of 180 per cent (Rs 18 per share). This is on the post-bonus expanded equity capital of ONGC.

Bonus shares

Earlier during the year, ONGC had issued bonus shares in the ratio 1:2, thus increasing its capital from Rs 1,426 crore to Rs 2,139 crore.

ONGC may end up paying Rs 2,204 crore for the third quarter of the current fiscal.

For the oil industry, the total under-recoveries during the third quarter 2006-07 for petrol, diesel, PDS kerosene and domestic LPG are estimated around Rs 7,753 crore.

Related Stories:
ONGC declares 180% interim dividend
ONGC sees marginal rise in Q2 net

More Stories on : PSU | Dividend Announcement | Policy | Petroleum | Oil & Natural Gas Corporation Ltd

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