In a move to boost government coffers before the Budget, Coal India Ltd (CIL) on Friday approved 207 per cent interim dividend for this fiscal. This is the second highest dividend payout of the company after 290 per cent for 2013-14.
According to a stock market notification, CIL board on Friday approved payment of Rs. 20.70 interim dividend per share of the face value of Rs 10 each.
This would result a total outgo of Rs 13,074.87 crore from a total profit of Rs 16,100.29 crore available for appropriation.
Of the total dividend payment, the Centre would receive Rs 10,414 crore against a shareholding of 79.65 per cent. The government will also get an additional Rs 2526 crore as dividend distribution tax.
In January this year, the Narendra Modi government has raked in Rs 22,600 crore through 10 per cent stake dilution in the national commercial coal miner.
Cash cow
CIL paid 20-40 per cent dividend till 2010-11. Since then, the government has been treating the company has a cash cow.
The demands were exceptionally high last year as CIL was forced part with Rs 18,317 crore to help government meet fiscal deficit.