West Bengal Mandates 30% Profit as Dividend to Government for Profitable State PSUs

Kolkata: The West Bengal Finance Department has asked all state PSUs to pay a minimum of 30 per cent dividend to the government on their profit after tax.

There are quite a few profitable state PSUs in West Bengal, including Forest Development Corporation, Essential Goods Supply Corporation, BENFED, Saraswati Press, among others.

The Finance Department has issued a notification to this effect.

To date, there has been no fixed rule on the amount of dividends these profitable state PSUs paid to the government. The dividend amount was on the discretion of the PSUs.

The notification stipulates that PSUs must necessarily pay 30 per cent of their profits as dividends to the government.

However, this is the minimum amount and the PSUs can pay more dividends if they wish to do so.

This will be an additional income source for the government. And it could help, as the government has to pay subsidies to run some corporations, including the State Transport Corporation.

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