Payment of Dividend by Profit making State Public Sector Undertakings

Finance Department
Budget Branch
Nabanna, Howrah – 711 102

No. 761-F.B. Howrah, the 27th day of August, 2025

Memorandum

Sub: Payment of Dividend by the profit making State Public Sector Undertakings which includes Government Companies, Statutory Corporations, Joint Venture corporations etc.

The State Government is entitled to receive dividends out of the profits on the basis of its majority of shareholding in the State Public Sector Undertakings (PSUs) which includes Government Companies, Statutory Corporations, Joint Venture corporations etc. The dividend payout should fulfill the requirements of the Government, as it would in the case of any prudent investor/owner. This is especially true as the Government has to undertake various development activities and cater to public interests.

Now, after careful consideration, State Government has decided that all the profit making State Public Sector Undertakings (PSU) shall pay a minimum annual dividend @ 30% of PAT (Profit After Tax), subject to the maximum dividend permitted under the extant legal provisions. Hence, it may kindly be ensured that all the profit making State Public Sector Undertakings, which includes Government Companies, Statutory Corporations, Joint Venture corporations etc. under the control of respective administrative departments, declare dividends out of profit after tax (PAT) without fail. However, State PSUs are advised to strive paying higher dividend taking into account relevant factors.

The receipt Head of Account (HOA) for payment of dividend will be “0050-Dividends and Profits-00-101-Dividends from Public Undertakings-001-Collections from Public Undertakings-19-Dividend/Profit.” Statutory provisions under the Companies Act 2013 and other Acts as applicable in this regard may also be followed.

Concerned administrative departments are requested to take immediate and necessary action in respect of the payment of dividends, including undeclared dividends from past years, due to non-finalization of Accounts by State PSUs.

Yours faithfully

Sd/- P. K. Mishra
Additional Chief Secretary to the
Govt of West Bengal

No. 761-FB dated 27.08.2025, Source

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