(a) whether there is a directive from the Government that public sector undertakings earning pre-tax profits must pay dividend to the general revenues;
(b) if so, the details thereof;
(c) the names of public sector undertakings earning pre-tax profits which have not paid dividend to the general revenues during the last three years, year-wise; and
(d) the action the Government have taken against these public sector undertakings?
MINISTER OF STATE FOR FINANCE (SHRI GINGEE N. RAMACHANDRAN)
(a) & (b): Ministry of Finance has issued instructions from time to time to all Ministries/Departments to ensure that PSUs under their administrative control pay dividend to the Government at rates prescribed. As per extant instructions, all profit-making PSUs are required to pay dividend of at least 20% of Government`s equity investment or 20% of post-tax profit, whichever is higher. In the case of oil, petroleum, chemicals and other infrastructure industries, the dividend pay out should be at least 30% of post tax profits.
(c) As per Report of the Comptroller & Auditor General of India for the year ended March, 2001, the profit earning PSUs which have not declared dividend during the last three years are:
Year No. of profit earning PSUs which have not declared dividend
1998-1999 48 1999-2000 40 2000-2001 52