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Public sector companies may pay more than 20 per cent interim dividend for 2011-12. This will be good news not just for the Government but also for all other shareholders including the retail one.
Normal norms say all profit-making state-owned firms are required to declare a minimum 20 per cent dividend on equity or at least 20 per cent of post-tax profits, whichever is higher. Now, with the Government finances at low, the Finance Ministry is pushing for higher pay outs from PSUs in oil and gas, chemicals and other infrastructure sectors
The Economic Affairs Secretary, Mr R. Gopalan, met the Chairmen of various Government-owned companies, including SAIL and NALCO. Although he refused to divulge what transpired at the meeting, it is believed that the Government has asked the companies to shell out more.
A senior PSU official said that it was a routine meeting and takes place every year. Now the board will take a call on the quantum of dividend to be given. Dividend is a part of the profit and distributed among the shareholders. Meeting with some other PSUs will take place within next couple of days.
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