Some PSUs unwilling to pay special dividend

Jan 10 2014, 19:52 IST
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Irked by demand for higher payout, PSUs are also demanding a clear-cut policy on special dividends. Reuters Irked by demand for higher payout, PSUs are also demanding a clear-cut policy on special dividends. Reuters
SummaryIrked by demand for higher payout, PSUs are also demanding a clear-cut policy on special dividends.

road map for disinvestment in the remaining days of this fiscal has been laid out. The divestments lined up include major PSUs like IOC, Engineers India (EIL), BHEL and Hindustan Aeronautics (HAL).

The finance ministry is planning to go ahead with the stake sale of IOC and EIL this month, while BHEL’s divestment is slated for February. The government also proposes to offload equity in HAL in March. Although the government had planned to raise R40,000 crore from disinvestment of PSUs, it has so far garnered only R3,000 crore from the sale of stake in seven PSUs, including Power Grid Corporation, Hindustan Copper, National Fertilisers and MMTC. Dividend and disinvestment are essential for the government to cap the fiscal deficit at the targeted level of 4.8% of GDP in FY14.

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