Continuous increase in dividend to the government from Central Public Sector Enterprises, know complete information…

New Delhi: The last five financial years have witnessed a consistent and significant increase in the dividends received by the Central Government from Central Public Sector Enterprises (CPSIs). This increase has been much more than the government’s revised estimates. Dividend received from CPSEs is an important source of non-tax revenue of the government and has become a strong indicator in government financial management.

Let us tell you that, according to the data released by the Finance Ministry, the actual dividend collection from CPSEs in 2020-21 was Rs 39,750 crore, which was much more than the revised estimate (Rs 34,717 crore). This improved performance has led to a strong financial position for the government, although the government had reduced its equity stake in several CPSEs through disinvestment.

Let us tell you that in 2021-22, dividend from CPSEs reached Rs 46,000 crore, while RE was Rs 59,294 crore. Nevertheless, despite global and domestic economic challenges, CPSEs ensured good dividend flow.

At the same time, in 2022-23, the dividend received from CPSEs gained momentum and reached Rs 59,533 crore, which was much more than the estimated Rs 43,000 crore. This positive trend continued in FY 2023-24 as well, and the government received a dividend of Rs 64,000 crore from CPSEs, much higher than the revised target of Rs 50,000 crore.

The figure of dividend received from CPSEs in 2024-25 reached Rs 74,017 crore, the highest in the last five years. This highest level reflects better governance, accountability, and improvement in financial performance of CPSEs.

Dividend received from CPSEs is now paid in a structured manner, the Finance Ministry said in a statement. For this, regular monitoring of dividends of CPSEs is done with the help of Inter-Ministerial Forum, Capital Management and Dividend Monitoring Committee (CMC). DIPAM (Department of Investment and Public Asset Management) also used the Offer for Sale (OFS) route for value creation of CPSEs. For example, disinvestment of 3.61 per cent paid-up equity of Gold Union in ‘Mazgan Dock Shipbuilders Limited’ was initiated from April 4, 2025. Gold Union received Rs 3,673.42 crore from this disinvestment.

DIPAM organized a workshop on 17 January 2025 in New Delhi to enhance leadership and communication capabilities within CPSEs. This workshop was for executives involved in finance, business development and strategy, with the aim of empowering them to better communicate with investors and financial analysts. Additionally, a capacity building program on Fundamentals of Financial Markets was organized at India Habitat Centre, New Delhi on 29 August 2025.

Consistent improvement in dividend payout, successful market-based disinvestment and focused capacity building initiatives have further strengthened DIPAM’s initiatives in 2025. As a result, the financial position of the government has strengthened and investor confidence has also increased. This is an important step towards long-term value creation in CPSEs.