PSU Dividends Hit Record Rs 740 Billion in FY25

04 Apr 2025 CW Team

Major Contributors to Government Revenue The highest dividend payer was Coal India Ltd., contributing Rs 102 billion, followed closely by Oil and Natural Gas Corporation (ONGC) with Rs 100 billion. Bharat Petroleum Corporation Ltd. (BPCL) secured the third position with Rs 36 billion. Other key contributors included Telecommunications Consultants (India) with Rs 38 billion and Hindustan Zinc Ltd. with Rs 36 billion.

Under the existing rules, PSUs are required to pay a minimum annual dividend of 30% of their profit after tax (PAT) or 4% of their net worth, whichever is higher. For financial sector PSUs, such as non-banking financial companies (NBFCs), the 30% of net profit norm applies, but the net worth criterion has been removed.

Higher Targets for FY 2025-26 For the upcoming fiscal year 2025-26, the government has set an even higher target of Rs 690 billion in dividend collections from PSUs. This projection aligns with the Centre’s efforts to boost revenue and maintain fiscal discipline.

Additionally, the government expects Rs 2.56 trillion in dividends from the Reserve Bank of India (RBI) and public sector banks, as announced by Finance Minister Nirmala Sitharaman in her Budget speech on February 1. The RBI’s dividend for FY 2024-25 stood at Rs 2.1 trillion, which was double the budgeted estimate for the year.

RBI Dividends and Fiscal Management The RBI’s annual dividend is a crucial source of non-tax revenue for the government, helping bridge the fiscal deficit. With a higher-than-expected dividend from the central bank last year, the government was able to maintain fiscal stability while funding key development initiatives.

The increase in PSU and RBI dividends reinforces the government's strategy of leveraging state-owned enterprises to generate revenue while ensuring public sector investments remain robust. As dividend targets rise, the performance of major PSUs and financial institutions will play a crucial role in meeting the government's fiscal objectives in the coming years.

The Indian government has received a record Rs 740 billion in dividends from Central Public Sector Enterprises (CPSEs) in FY 2024-25, marking a 16% increase from Rs 637 billion in the previous financial year. The latest data from the Department of Investment and Public Asset Management (DIPAM) shows that the dividend collections have exceeded the revised budget estimate of Rs 550 billion for the year. Major Contributors to Government Revenue The highest dividend payer was Coal India Ltd., contributing Rs 102 billion, followed closely by Oil and Natural Gas Corporation (ONGC) with Rs 100 billion. Bharat Petroleum Corporation Ltd. (BPCL) secured the third position with Rs 36 billion. Other key contributors included Telecommunications Consultants (India) with Rs 38 billion and Hindustan Zinc Ltd. with Rs 36 billion. Under the existing rules, PSUs are required to pay a minimum annual dividend of 30% of their profit after tax (PAT) or 4% of their net worth, whichever is higher. For financial sector PSUs, such as non-banking financial companies (NBFCs), the 30% of net profit norm applies, but the net worth criterion has been removed. Higher Targets for FY 2025-26 For the upcoming fiscal year 2025-26, the government has set an even higher target of Rs 690 billion in dividend collections from PSUs. This projection aligns with the Centre’s efforts to boost revenue and maintain fiscal discipline. Additionally, the government expects Rs 2.56 trillion in dividends from the Reserve Bank of India (RBI) and public sector banks, as announced by Finance Minister Nirmala Sitharaman in her Budget speech on February 1. The RBI’s dividend for FY 2024-25 stood at Rs 2.1 trillion, which was double the budgeted estimate for the year. RBI Dividends and Fiscal Management The RBI’s annual dividend is a crucial source of non-tax revenue for the government, helping bridge the fiscal deficit. With a higher-than-expected dividend from the central bank last year, the government was able to maintain fiscal stability while funding key development initiatives. The increase in PSU and RBI dividends reinforces the government's strategy of leveraging state-owned enterprises to generate revenue while ensuring public sector investments remain robust. As dividend targets rise, the performance of major PSUs and financial institutions will play a crucial role in meeting the government's fiscal objectives in the coming years.

Real Estate

08 May 2026

Integrated Waterproofing Strategies

Waterproofing buildings used to be an annual pre-monsoon affair but the evolution of real-estate development has changed that approach. In new developments, developers are weaving waterproofing solutions into both the design and construction phases, an approach that Nikhil Madan, Managing Director, Mahima Group, says, “is all about ensuring lasting durability [of the building] and keeping lifecycle risks including water seepage and extensive maintenance to a minimum.”Watertight by designAluminium formwork systems aren’t commonly thought of as a waterproofing tool but at the Mahima Group,..

Infrastructure Urban

08 May 2026

GROHE Showcases Water-Led Design At Milan

GROHE unveiled its GROHE SPA Aqua Sanctuary at Milan Design Week 2026, transforming Piccolo Teatro Studio Melato into an immersive showcase of water, design and wellbeing. Built on the philosophy of ‘Wellbeing Through Water’, the installation reimagined bathrooms as holistic spaces for relaxation, rejuvenation and self-care.The Aqua Sanctuary was presented through three interconnected sanctums. The first showcased the 3D-printed GROHE SPA AquaTree shower and faucet, highlighting bespoke innovation and biophilic design. The second featured the Atrio Private Collection and GROHE SPA x Buster..

Infrastructure Transport

08 May 2026

Rahee Group Expands Rail Manufacturing Capacity

Rahee Group has outlined a multi-year investment roadmap to expand its operational footprint and strengthen manufacturing capabilities for India’s growing railway and urban transit sector. The Group is expanding in Odisha with a new Track Component Casting Unit, for which the groundbreaking ceremony was held on 8 April 2026 in the presence of Odisha Chief Minister Mohan Charan Majhi.The Group’s flagship EPC arm, Rahee Infratech Ltd, continues to focus on complex rail infrastructure projects, including track systems, bridges, viaducts and ballastless infrastructure. Its wholly owned subsidi..