Question : Dividend Targets for CPSUs

Will the MINISTER OF FINANCE be pleased to state:

(a) the details of overall profit/loss incurred by the Union Government on running Central Public Sector Undertakings (CPSUs) during the last five financial years;
(b) the details of total amount of dividend/ profit earned by the CPSUs during the said period;
(c) whether the Government has set any targets for CPSUs for paying dividends to Union Government for the financial year 2017-18 and if so, the details thereof; and
(d) whether the Government has issued any instructions to CPSUs for higher dividend and if so, the details thereof?

THE MINISTER OF STATE INTHE MINISTRY OF FINANCE (SHRI PON. RADHAKRISHNAN) •

(a) and (b) As per available information, details of overall Net Profit of Central Public Sector Enterprises
(CPSEs) and amount of Dividend received by•the Union Govenini.ent from CPSEs during financial years 20i1-
12 to 2015-16 are as under:
mcrore)


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(c) The Union Gove=ent has targeted''{'' 67529.24 i::rore on account of ''Dividends from Central Public
Sector Enterprises and other investments'' for the year 2017-18.


(d) Gove=ent of India''s instructions•on the subject inter-alia provides that every CPSE would pay"a minimum annual dividend of30% of PAT or 5% of the net-worth, whichever ishigher subject to the maximum dividend permitted under the extant legal provisions. Nonetheless, CPSEs are expected to pay the maximum dividend permissible under the Act imder w4ich a CPSE has been set up, uuless lower dividend proposed to be paid is justified.after the analyses aspects viz. (i) Net-worth of the CPSE and its capacity to borrow; (ii) Long­ term borrowings; (iii) Capital Expenditure (CAPEX) I Busiliess Expansion needs; (iv) Retention of.profit for further leveraging in !me with the <;::Al''EX needs; and (v) Cash and bank balance,

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