Consider special dividend, FinMin asks ONGC, others

New Delhi : Seeking to shore up its finances, the finance ministry has asked cash-rich oil public sector undertakings (PSUs) like Oil and Natural Gas Corp (ONGC) to consider special dividend over and above the 30 per cent interim dividend they anyway have to pay.

According to norms, all profit-making state-owned firms are required to declare a minimum 20 per cent dividend on equity or a minimum dividend payout of 20 per cent of post-tax profits, whichever is higher.

The finance ministry on October 31 wrote to the petroleum ministry saying the minimum dividend payout for PSUs in oil and gas, chemical and other infrastructure sectors would be 30 per cent this year.