Latest news with #CPSEs
Time of India
6 hours ago
- Business
- Time of India
"Firm-by-firm" review: CPSE dividend may exceed target by 16%
New Delhi: The finance ministry is undertaking a comprehensive "firm-by-firm" review of its dividend policy for central public sector enterprises (CPSEs) and expects such surplus flow from non-financial entities to breach the FY26 budgetary target by 16%, a top official told ET. The ministry eyes dividend mop-up from non-financial CPSEs and other companies in which the government holds stakes to exceed ₹80,000 crore in the current fiscal, he said. This will surpass both the previous high of ₹74,017 crore realised last fiscal and the FY26 budgetary target of ₹69,000 crore. This assessment factors in expected pressure on the margins of state-run petroleum firms-together the biggest contributor to the dividend kitty-in the short run due to volatile global crude oil prices in the wake of the Israel-Iran conflict. This means the government expects the profits of CPSEs to remain strong across various sectors in the current fiscal year. New strategy The Department of Investment and Public Asset Management (DIPAM) is working out a composite strategy that would factor in a CPSE's profitability, capital spending and other operational requirements to ensure fair dividend payout, the official said. " DIPAM is following a composite strategy under which we have to balance their corporate performance, capex requirement and policy of fair dividends to shareholders," he said. DIPAM is also considering asking only listed CPSEs that are profitable to fork out dividends on a quarterly basis, he added.
Time of India
3 days ago
- Business
- Time of India
What needs to be done to promote development of ccus technologies in India
To achieve its goal of Net Zero by 2070, India needs to not only accelerate the deployment of commercially viable technologies but also take timely steps to support R&D and development of emerging technologies having high relevance for it. In view of the abundant coal reserves and high dependence on coal for its domestically produced energy supply, CCUS(Carbon Capture Utilisation and Sequestration) technologies present high potential for its journey to 2070 goal. In FY 2024, coal supplied 79 per cent of domestically produced energy. Even after 50 years since the first CCUS project started in the world, the progress and contribution of CCUS to reduction of global emissions has been negligible and far less than the expectations. Operational projects capture only about 42 million tonnes per annum which is 0.1 per cent of global anthropogenic emissions. However, IEA says that achieving Net Zero at global level would not be possible without CCUS technologies. It estimates that 6.2 giga tonnes of gas would be the required annual capacity of CCUS projects by 2050. Capture technologies have matured and pipeline transport of captured CO2 has been proven commercially. Progress on utilisation of captured gas will be critical. However, in view of the very large quantities to be required to be captured, the sequestration ( storing the captured gas in oceanic or geological formations) will be the mainstay as the world expands deployment of CCUS. A number of countries have put in place policy framework and incentives to support its growth. In India, a few pilot scale projects have been taken up by CPSEs and some private companies. The efforts of DST and CSIR in R&D of capture and conversion of CO2 in green products have reached the 'test bed' stage. NITI Aayog has come out in 2022 with a comprehensive study recommending the policy framework and deployment mechanism of CCUS. Further action is required without any delay. First step would be to nominate a lead Ministry. Though applications of CCUS will fall in the jurisdiction of several Ministries, It is recommended that either the Ministry of Heavy Industry or Ministry of Coal should lead it for obvious reasons. A national mission is needed with participation of all concerned Ministries and institutions. Recommended national policy framework should come out with specific national targets with priority amongst the sectors for development. Applications in hard-to-abate industrial sectors should be given the highest priority as emissions from the same are projected to grow rapidly in our journey to Vikshit Bharat by 2047. Cost of capture in ₹per tonne is also lower in these sectors than the coal based power plants. Currently the cost of capture is around ₹400 per tonne in gasification projects, ₹2000 to 3000 for cement and steel plants but about ₹3200 for coal power plants . CCUS technologies may have definite relevance for the power sector also in the long term. There are more cost effective technologies available for its decarbonisation in the next two decades. CCUS technologies may emerge important for the power sector in the decade of 2060s if grid operations require support of base load generation and inertia from coal power plants in the scenario of less than projected expansion of nuclear power plants. CCUS will come handy to run legacy coal plants for meeting the peak demand. The policy should also address the concerns associated with any new technology , with due attention to the liability against the project proponents arising from uncertainties in transport and storage. As India has limited availability of concessional finance to support its energy transition, it will be appropriate to take up three to four Hub and Cluster mode projects to achieve the objectives of shared cost of transport and storage infrastructure and regulatory sandboxes in various types of geographies. Such hubs need to be aligned with the hubs being developed in the National Green Hydrogen Mission as green hydrogen is a critical input to produce green products from the captured carbon dioxide. To effectively address the high perceived risk of any new technology, the project implementation in such hubs should be anchored in SPVs set up in PPP mode. Each cluster should have projects in multiple sectors like steel, refinery, cement and coal based power plants. The grant support should be in part capex support upfront and balance per tonne of captured gas to ensure actual outcomes and successful demonstration. CCUS projects can also be supported through carbon credits by expediting the roll out of the Carbon Credit Trading Scheme. To tap this potential, CCTS framework should notify trajectory of emission intensity reduction targets for 10-15 years to facilitate investment decisions. Preferential procurement of green products from 'utilisation' of captured gas will be a necessary intervention. It will also be necessary to set up a dedicated national institute , like we have for solar and wind, which can act as a repository of all the knowledge and updated information on identified geological formations for sequestration. Lastly, we must also assess and communicate to the policy makers the job creation potential in the full CCUS value chain to give it a rightful place in the green growth perspective of India. (The author is former Union Power Secretary of India and is currently Partner with The Lantau Group)
Hans India
5 days ago
- Business
- Hans India
Central PSEs contribution to India's financial resources sees 120 pc surge in 11 years
The Central Public Sector Enterprises (CPSEs) have contributed a record Rs 4.85 lakh crore to India's financial resources in FY2023- 2024, a 120 per cent increase from Rs 2.20 lakh crore in FY 2013-2014, the Finance Ministry said on Monday. The Central government's resource optimisation measures have borne fruit, according to a ministry post on social media platform X. "In FY 2023-24, the total contribution by the Central Public Sector Enterprises (CPSEs) to the Central Exchequer was Rs 4.85 lakh crore, a phenomenal increase of 120 per cent from Rs 2.20 lakh crore in the FY 2013-14," said the ministry. Last week, Union Finance Minister Nirmala Sitharaman received a dividend cheque of Rs 8,076.84 crore on behalf of the government from the State Bank of India (SBI) for the financial year 2024-25. Leading public sector companies in the financial, power and energy sectors recorded a strong growth in profit in Q4 FY25. The country's largest lender, SBI and insurance giant Life Insurance Corporation of India (LIC) led the charge with a net profit of Rs 18,643 crore and Rs 19,013 crore, respectively. The SBI's net profit for the financial year 2024-25 has now soared to Rs 70,901 crore, while the LIC has recorded an impressive net profit of Rs 48,151 crore for the year. Coal India earned a net profit of Rs 9,604 crore during the fourth quarter, while Indian Oil Corporation (IOC) registered a net profit of Rs 7,265 crore, with upstream oil exploration giant ONGC registering a net profit of Rs 6,448 crore during the quarter. NTPC recorded a net profit of Rs 7,897 crore while Power Finance Corporation (PFC), which also comes under the Ministry of Power, earned a robust Rs 8,358 crore. Power Grid Corporation of India also registered a strong profit of Rs 4,143 crore during the January-March quarter. The Prime Minister Narendra Modi-led government has strengthened India's PSUs in the last 11 years, turning them into wealth creators and making them integral to the nation's growth. With focused reforms, strategic autonomy, and capital support, PSU market cap surged across the energy, power, and infrastructure sectors.
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Business Standard
09-06-2025
- Business
- Business Standard
FM Sitharaman hails SPMCIL, hopes it to get status of Navratna soon
Finance Minister Nirmala Sitharaman on Monday lauded the performance of the Security Printing and Minting Corporation of India Limited (SPMCIL) and expressed confidence that it will soon become a Navratna state-owned company. Currently, SPMCIL, under the administrative control of the Department of Economic Affairs of the Finance Ministry, is a Schedule 'A' Miniratna Category-I company of the Government of India. The government grants Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises (CPSEs) based on certain pre-defined criteria, including financial parameters such as track record of profit and net worth. Inaugurating the Corporate Office of SPMCIL, Sitharaman appreciated the works being done by the CPSE, which include printing of currency notes, minting of coins for circulation and commemorative coins. She hoped SPMCIL would also achieve Navratna status, given its consistent financial performance. Following its capital restructuring in 2015, the company fully repaid its loan with interest by 2016-17 and continues to deliver strong returns, Sitharaman said. In fiscal 2023-24, it paid a dividend of Rs 364 crore, following a record dividend of Rs 534 crore the year before. In her speech, the finance minister noted that the CPSE delivered about 3.4 metric tonnes of refined gold to the Reserve Bank of India from seizures transferred by the Customs department. It also refined silver and gold received from institutions such as Tirumala Tirupati Devasthanams and Vaishno Devi Shrine Board, among others. During 2024-25, the state-owned firm produced over 1,200 crore banknotes and 150 crore circulation coins as well as over 1.5 crore passport booklets and over 700 crore Excise Adhesive Labels, and various categories of postal and security-related stationery essential for government and public services. "I am equally impressed with the popularity of SPMCIL's souvenir coins, which play a significant role in promoting India's rich cultural heritage, history and art," she said. Sitharaman noted that in free India's recorded history, a total of 210 commemorative coins have been issued out of which 105 have been issued in the last decade, including coins celebrating events such the 2900th birth anniversary of Jain Tirthankar Shri Parshvanath Bhagwan, the 550th Prakash Purab of Guru Nanak Dev, the new Parliament Complex, the 1000 years of Brihadeeswarar Temple, and India's G20 Presidency. Over 20,000 coins have been purchased by the public for the new series of colour souvenir coins, which have been themed around Panchatantra, endangered species, and the Shri Ram Janmabhoomi Temple in Ayodhya. Speaking during the occasion, Minister of State for Finance Pankaj Chaudhary said the government would provide all support to the CPSEs to improve their efficiency and profitability.
Mint
09-06-2025
- Business
- Mint
Sitharaman lauds SPMCIL, hopes it to get Navratna status soon
New Delhi, Jun 9 (PTI) Finance Minister Nirmala Sitharaman on Monday lauded the performance of the Security Printing and Minting Corporation of India Limited (SPMCIL) and expressed confidence that it will soon become a Navratna state-owned company. Currently, SPMCIL, under the administrative control of the Department of Economic Affairs of the Finance Ministry, is a Schedule 'A' Miniratna Category-I company of the Government of India. The government grants Maharatna, Navratna and Miniratna status to Central Public Sector Enterprises (CPSEs) based on certain pre-defined criteria, including financial parameters such as track record of profit and net worth. Inaugurating the Corporate Office of SPMCIL, Sitharaman appreciated the works being done by the CPSE, which include printing of currency notes, minting of coins for circulation and commemorative coins. She hoped SPMCIL would also achieve Navratna status, given its consistent financial performance. Following its capital restructuring in 2015, the company fully repaid its loan with interest by 2016-17 and continues to deliver strong returns, Sitharaman said. In fiscal 2023-24, it paid a dividend of ₹ 364 crore, following a record dividend of ₹ 534 crore the year before. In her speech, the finance minister noted that the CPSE delivered about 3.4 metric tonnes of refined gold to the Reserve Bank of India from seizures transferred by the Customs department. It also refined silver and gold received from institutions such as Tirumala Tirupati Devasthanams and Vaishno Devi Shrine Board, among others. During 2024-25, the state-owned firm produced over 1,200 crore banknotes and 150 crore circulation coins as well as over 1.5 crore passport booklets and over 700 crore Excise Adhesive Labels, and various categories of postal and security-related stationery essential for government and public services. "I am equally impressed with the popularity of SPMCIL's souvenir coins, which play a significant role in promoting India's rich cultural heritage, history and art," she said. Sitharaman noted that in free India's recorded history, a total of 210 commemorative coins have been issued out of which 105 have been issued in the last decade, including coins celebrating events such the 2900th birth anniversary of Jain Tirthankar Shri Parshvanath Bhagwan, the 550th Prakash Purab of Guru Nanak Dev, the new Parliament Complex, the 1000 years of Brihadeeswarar Temple, and India's G20 Presidency. Over 20,000 coins have been purchased by the public for the new series of colour souvenir coins, which have been themed around Panchatantra, endangered species, and the Shri Ram Janmabhoomi Temple in Ayodhya. Speaking during the occasion, Minister of State for Finance Pankaj Chaudhary said the government would provide all support to the CPSEs to improve their efficiency and profitability.
