Coal India Ltd (CIL) board declared a dividend of 290 percent to its shareholders for the financial year 2013-14 on 14 January 2014. The declared dividend of 290 percent effectively translates into a payout of 18317 crore rupees at 29 rupees per share.
This will be the highest dividend ever declared by CIL, a Maharatna company. CIL will pay the dividend from 25 January 2014 onwards to its shareholders.
The Union Government of India will get 16485.71 crore rupee since it holds 90 percent of the company’s share. The government will also get an additional 3113.05 crore rupees as dividend distribution tax from CIL. As a result, the total dividend that will be paid by the CIL to the government amounts to 19598.76 crore rupees.
The payout of dividend by the CIL will help the Union Government in achieving its disinvestment target of 40000 crore rupee for the financial year 2013-14. This in turn will help restrict the fiscal deficit within the targeted 4.8 percent for the year 2013-14.
In 2012-13, CIL paid a total dividend of 8842.91 crore rupee to the Union Government at 14 rupees per share