NEW DELHI: Union Heavy Industry and Public Enterprises Minister Anant Geete today denied reports that the government was demanding hefty dividend from a few reluctant state-owned firms to bridge any tax shortfall this year. He clarified that there is no undue insistence being made in this regard.
"We are not insisting much on the dividend, but all our central public sector enterprises are paying satisfactory dividend," Geete told PTI. Recent reports suggested that the finance ministry had demanded a dividend payout between 30 percent and 100 percent from 12 of the state-owned firms from their 2016-17 or 2017-18 net profit, share buybacks or bonus shares.
According to estimates, the Centre has budgeted USD 21.8 billion in dividend payouts from all state firms in the current financial year, slightly less than the previous year. However, businesses have experienced disruptions of late, stemming from the government's move to demonetise high-value currency notes a year ago and the rollout of goods and services tax in July.
Central public sector enterprises may only finalise their full dividend payouts for the current fiscal in September next year. Besides, the minister said efforts are being made to finalise the Industry 4.0 policy within the next six months.
"The fear is that in the race to become multinationals, domestic firms should not forget India," Geete said in a lighter vein, adding that a majority of India Inc was pursuing international projects, especially in Africa.
Addressing a conference organised by CII here, the minister assured the government's support to domestic companies to help realise their ambition to become MNCs. He also said the government plans to spend Rs 3,000 crore to implement various programmes under the Capital Goods Policy.