The Modi-government expects to bridge any shortfall in disinvestment receipts through robust dividends by PSUs.

The dividend receipts from PSUs are set to cross Rs 50,000 crore in the current fiscal against Budget RE (revised estimate) of Rs 43,000 crore, according to internal calculations of the finance ministry.

The spike in global commodity prices has helped the PSUs to earn substantial profits which would boost the treasury kitty.

Last week, the government received around Rs 2,000 crore as interim dividend from NTPC. The PSU announced a dividend of Rs 4,121 crore for its shareholders, with the government holding 51.1 per cent in it.

Dividend revenue in February and March would be aided by fresh payments by Coal India, Oil and Natural Gas Corporation, NHPC, Power Grid, Power Finance Corporation and NMDC, an official said.

Higher dividends could act as a buffer for the government if it fails to meet the revised disinvestment target of Rs 50,000 crore for the current financial year.

Disinvestment receipts stood at Rs 31,106 crore so far in FY23 or 62 per cent of revised estimates. The government is banking on the sale of a portion of its residual 29.54 per cent stake in Vedanta-controlled Hindustan Zinc to meet the disinvestment target for FY23.

The Centre is also betting on the strategic sale of NMDC Steel. The finance ministry has received multiple expressions of interest: Tata Steel, Jindal Steel and Power, JSW Steel, Adani Group and Vedanta Group are likely to have bid for the government’s majority stake.

Currently, the government holds a 60.79 per cent stake in NMDC Steel, which is an arm of India’s largest iron ore producer NMDC, the factory located at Nagarnar, Chhattisgarh.

It plans to divest its 50.79 per cent shareholding along with management control to a strategic buyer through a two-stage competitive bidding process before the end of this fiscal.

The Centre has lowered dividend receipts from banks and financial institutions by 45 per cent to Rs 40,953 crore in its revised estimate in the budget, following the Rs 30,000-crore shortfall in dividend receipts from the RBI in FY23.

Officials are confident the Centre would be able to meet Rs 2.62 trillion non-tax revenue target in the fiscal.

The Centre had garnered Rs 59,000 crore in dividends from PSUs in FY22, 28 per cent more than the target of Rs 46,000 crore for the year because of a sharp rise in the prices of commodities such as metals, mining and petroleum.

Funds drive

■ Dividend receipts in the fiscal set to cross Rs 50,000 crore against revised estimate of Rs 43,000 crore

■ Dividends expected from Coal India, ONGC, NHPC among others

■ With a month to go, divestment receipts at Rs 31,000 crore below target of Rs 50,000 crore for the fiscal