The board of directors of Coal India has approved an interim dividend of ₹16.50 per share of ₹10 face value each for 2017-18. The move will result in a total outgo of ₹10,242 crore. As 78.55 per cent owner, the government will benefit ₹8,045 crore. The company’s total dividend for the year is likely to exceed previous year’s total of ₹19.90 that came on the back of ₹3,650 crore share buyback (helping the government mop up ₹2,638 crore over and above the dividend payments). CIL paid 20-40 per cent dividend till 2010-11. Since then, the dividend payout rate increased phenomenally.
This is over and above the mop up through IPO in end 2010 and FPO in 2014-15, bringing in billions of dollars to the government coffers.
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