New Delhi:

 In what seems to be a shot in the arm for investors, the centre's public sector undertakings (PSUs) are expected to distribute a record-breaking dividend ranging between ₹1.3 to ₹1.4 lakh crore in the current fiscal year, according to an official estimate. The development, experts believe, would help surpass the government's initial revenue projections while also providing a substantial financial uplift to numerous retail investors holding shares in these enterprises.

Profits to breach ₹3.5 lakh crore

The Department of Investment and Public Asset Management (DIPAM) and the Department of Public Enterprises (DPE) have reinforced government guidelines that require PSUs to allocate at least 30% of their profits or 4% of their net worth as dividends. This policy ensures that these companies retain sufficient funds for capital expenditures, aligning with the government's broader strategy to stimulate economic growth through increased investment in infrastructure and other critical sectors.

According to official projections, the profits of these state-owned companies are set to exceed ₹3.5 lakh crore for the first time, marking a notable increase of at least 10% compared to the previous year. This surge in profitability is a testament to the robust performance of these entities amidst challenging economic conditions.

Restoring confidence of ordinary investors in market

Arunish Chawla, Secretary of DIPAM and the official overseeing DPE, emphasized the importance of public enterprises setting a benchmark in the stock market. "We aim for public sector companies to lead by example, encouraging the private sector to follow suit by declaring fair dividends. This will help restore the confidence of ordinary investors in the stock market," Chawla stated. Currently, 66 out of the 266 PSUs are listed on stock exchanges.

The enhanced dividend payout is expected to contribute an additional ₹10,000 crore to the government's coffers, surpassing the revised estimates for the fiscal year. This influx of funds is likely to aid in reducing the overall fiscal deficit, which is currently estimated at 4.8% of GDP.

To create more opportunities

Read more:

Govt Extends Duty-Free Imports Of Urad Till Mar 2026