After govt’s pressure, state-run oil firms declare Rs 4,570 crore special dividend

After govt’s pressure, state-run oil firms declare Rs 4,570 crore special dividend

State-run Indian Oil Corporation Ltd (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have declared a combined special dividend of `4,570 crore following pressure from the government, which is hoping to use its share in this to meet its fiscal deficit target this year.

The government, as the majority shareholder, will receive Rs 2,558 crore from the special dividend declared on Thursday. IOCL declared an interim dividend of Rs 4.5 per share or Rs 2,185 crore. BPCL announced an interim dividend of Rs 12 per equity share and HPCL Rs 6.40 per share.

The finance ministry had directed all administrative ministries to insist on public sector companies paying maximum possible dividend in this financial year so that additional resources are available for state programmes without breaching the fiscal deficit target. The government also advised state firms to borrow more to meet their capital spending needs. Read More…

 

Credit By : Economictimes.indiatimes.com

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