The Finance Ministry reported a significant 86.2% increase in the dividend payout to the Government from Central public sector enterprises (CPSEs), rising from Rs 39,750 in 2020–21 to Rs 74,017 crore in 2024-25. This surge reflects the success of the Centre’s capital management policies, accountability enhancements, and strategic disinvestment practices. The Department of Investment and Public Asset Management (DIPAM) played a crucial role in bolstering public finances and implementing market-oriented reforms during 2025.
Dividend payouts from CPSEs have been on a consistent upward trajectory despite the gradual reduction in Government shareholding through disinvestment since FY 2020-21. These dividends serve as a vital source of non-tax revenue and are now discussed methodically in the Committee for Monitoring of Capital Management and Dividends by CPSEs. Over the past five years, there has been a notable improvement in dividend payouts by CPSEs, surpassing the Revised Estimates each year.
DIPAM utilized the Offer for Sale (OFS) mechanism to enhance value for CPSEs, exemplified by the disinvestment of a portion of the government’s shareholding in Mazagon Dock Shipbuilders Limited. This strategic move, which commenced in April 2025, resulted in a substantial transaction amount of Rs 3,673.42 crore. Following the OFS, the market price of the stocks experienced an upward trend, benefiting investors with capital gains.
In its endeavor to foster Value Creation in CPSEs, DIPAM focused on strengthening leadership and communication skills within these enterprises. Collaborating with the Capacity Building Commission (CBC), DIPAM conducted workshops and training programs aimed at empowering CPSE executives in various domains such as finance, business development, strategy, and communication. These initiatives were designed to bridge communication gaps, enhance engagement with investors, and provide practical experiences to the participants.
Through sustained efforts in improving dividend performance, successful disinvestment strategies, and targeted capacity building programs, DIPAM’s initiatives in 2025 have reinforced fiscal stability, boosted investor confidence, and promoted long-term value creation in CPSEs.
