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New Delhi: Payments from state-run companies to the exchequer are likely to cross ₹ 80,000 crore in FY26, an all-time high, two people familiar with the matter said, citing strong contributions from oil and gas, power, and mining. Robust earnings in these sectors, along with a focus on boosting returns from public sector investments, is expected to sustain the growth in dividend inflows. During FY25, Central Public Sector Enterprise (CPSE) dividend collections stood at around ₹ 74,016.
68 crore, despite global headwinds and domestic demand pressures, beating revised estimates of ₹ 55,000 crore by a huge margin. Sector leaders NTPC Ltd, Powergrid Corporation of India Ltd, Hindustan Zinc Ltd, NPCIL Ltd, Coal India Ltd, National Aluminium Company Ltd and ONGC — the top dividend contributors among CPSEs in FY25 — are expected to drive the bulk of dividend payouts in FY26, the first person mentioned above said, requesting anonymity, "The consistent performance of key sectors, despite external challenges, reflects the growing resilience of India's public sector enterprises," the first person mentioned above said. Also read | States' liabilities under Centre's capex loans to surpass ₹ 3.
5 tn "With strategic reforms and a sharper focus on profitability, CPSEs could play an even bigger role in supporting the government's non-tax revenues going forward," the person added. Dividend payouts from oil and gas CPSEs are set to be boosted by surging demand for petroleum products, projected to reach a record 252.9 million tonnes in FY26, marking a 4.
65% year-on-year increase, driven primarily by higher petrol and diesel consumption. Tripling underground coal production In parallel, the country plans to triple underground coal production by 2028 to meet growing energy needs, compensating for declining opencast mining and reducing imports, despite global pressure to reduce fossil fuel reliance. Electricity demand is also on track for substantial growth, with peak requirements forecast to hit 277 gigawatts (GW) in FY26, up from approximately 250 GW in FY25, according to the mid-term review of the 20th Electric Power Survey.
The International Energy Agency (IEA) predicts India’s electricity demand will grow at an annual average of 6.3% over the next three years, outpacing the 2015–2024 average. Also read | Gensol’s West Asia operations look to separate from parent Budget documents show the central government anticipates total dividend receipts of ₹ 3.
25 trillion in FY26, comprising contributions from the Reserve Bank of India (RBI), public sector banks (PSBs) and CPSEs — a 12.3% increase from the revised estimate of ₹ 2.89 trillion for FY25.
A significant share of this is anticipated to come from the RBI. Record dividend The RBI announced a record dividend of ₹ 2.11 trillion to the government during FY24, accounted for in FY25.
The latest budget estimates say the dividend from CPSEs will be around ₹ 69,000 crore in FY26. Dividends from CPSEs to the central government have risen steadily since FY20. Payouts increased from ₹ 35,543 crore in FY20 to ₹ 39,750 crore in FY21, ₹ 59,294 crore in FY22, ₹ 59,533 crore in FY23, ₹ 63,749.
29 crore in FY24, and ₹ 74,016.68 crore in FY25. Also read | 'Centre, state, PSU capex set to decline in FY25' Notably, the budget estimate for FY25 was ₹ 56,260 crore, while the revised estimate was lower at ₹ 55,000 crore, underscoring the strength of actual collections.
"The dividend paid by CPSEs to the Centre may exceed the budgeted estimates. The target will likely be revised upward in the revised estimates, aligning more closely with the actual figures," said the second person mentioned above, who didn't want to be named. A spokesperson of the Ministry of Finance didn't respond to emailed queries.
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