Dividends from Central Public Sector Enterprises (CPSEs) to the government have seen a steady rise over the last five years, consistently surpassing revised estimates and reflecting improved financial performance and government oversight.
Dividends received by the central government from Central Public Sector Enterprises (CPSEs) have recorded a steady and notable rise over the last five financial years, broadly surpassing the government's revised estimates (RE). Dividends are a key source of non-tax revenue for governments. The recent dividend payout trend among state-owned companies underscores the impact of improved capital management, stronger financial performance, and enhanced government oversight.
Consistent Growth in Dividend Receipts
According to data released by the Ministry of Finance, actual dividend collections in 2020-21 stood at Rs 39,750 crore, comfortably exceeding the Revised Estimate of Rs 34,717 crore. This outperformance set the tone for subsequent years, even as the government continued to dilute its equity holdings in several CPSEs through disinvestment.
In 2021-22, dividend receipts totalled Rs 46,000 crore, against an RE of Rs 59,294 crore. While collections were lower than the previous year's sharp rise in estimates, they still reflected a robust flow of dividends amid challenging global and domestic economic conditions.
The momentum strengthened significantly in 2022-23, when actual dividend receipts surged to Rs 59,533 crore, far exceeding the RE of Rs 43,000 crore.
The upward trajectory continued into 2023-24, with the government receiving Rs 64,000 crore in dividends from CPSEs, surpassing the revised target of Rs 50,000 crore. This marked another year of substantial overperformance, underscoring improved profitability and disciplined capital allocation across public-sector enterprises.
The most pronounced increase was recorded in 2024-25, when dividend receipts rose to Rs 74,017 crore, up from Rs 55,000 crore. This represented the highest dividend inflow from CPSEs in the five years and reflected sustained improvements in governance, accountability, and financial performance.
"Dividend from CPSEs form an important source of non-tax revenue. Dividend payouts are currently deliberated in a structured manner by the inter-Ministerial forum, the Committee for Monitoring of Capital Management and Dividends (CMCDC), under CPSES. There has been a considerable improvement in the dividend payouts by CPSEs over the last five years," the finance ministry said in a statement on Wednesday.
DIPAM's Strategic Initiatives for Value Creation
Disinvestment and Market Value Enhancement
DIPAM also used the Offer for Sale (OFS) route to create value for CPSEs. Disinvestment of 3.61 per cent of the paid-up equity in 'Mazagon Dock Shipbuilders Limited' out of Gol's shareholding of 84.83 per cent in MDL through OFS was launched on April 4, 2025, for Non-Retail Category and on April 7, 2025, for Retail Category. In view of oversubscription, under the Non-Retail Category,the Green Shoe Option was exercised. Gol realised Rs 3,673.42 crore from the transaction. Post-OFS market prices of stocks have generally trended upward, adding to investors' capital gains.
Capacity Building and Skill Development
As part of its broader Value Creation in CPSEs initiative, the Department of Investment and Public Asset Management (DIPAM) undertook focused efforts to enhance leadership and communication capabilities within CPSEs. In collaboration with the Capacity Building Commission (CBC), DIPAM has organised a Workshop on Enhancing Leadership Communication Skills in New Delhi on January 17, 2025. The workshop aimed to empower CPSE executives dealing with Finance, Business Development, Strategy, and Communication, particularly in their engagement with investors and financial analysts. It enabled participants to identify communication gaps and engage in training sessions and simulated real-world experiences.
The Department also successfully organised the Capacity Building Programme on Basics of Financial Markets conducted by the NSE for the officers and employees on August 29, 2025, at the India Habitat Centre, New Delhi.
"Through sustained improvement in dividend performance, successful market-based disinvestment, and targeted capacity building, DIPAM's initiatives in 2025 reinforced fiscal strength, promoted investor confidence, and advanced long-term value creation in CPSEs," the ministry's statement concluded.
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