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Revenue constrained govt may push oil PSUs short on FY21 capex to pay higher dividend
TIWN
Revenue constrained govt may push oil PSUs short on FY21 capex to pay higher dividend
PHOTO : TIWN

New Delhi, Dec 26 (TIWN) Oil sector public sector undertakings (PSUs) may have to bear a larger share of additional dividend payment to the government this year with almost all companies falling behind on their capex plan for the current fiscal.

As of November, the capex of PSU oil companies put together stands at ₹46,303 crore, less than 50% of the annual target of ₹98,522 crore. The government has asked companies to complete at least 75% of capex till the end of December quarter. But this looks highly unlikely now pushing the case for higher dividend payout. In meetings with PSUs, Finance Minister Nirmala Sitharaman had stressed on the need for PSUs to step up investment during the time of the pandemic to boost overall sentiments and kickstart investment climate in the country. She had specifically urged companies to complete at least 75% of capex target by December-end and more than 100% by March.

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