OCTOBER 20238TOP STORYGOVERNMENT GAINS SUBSTANTIAL DIVIDENDS FROM COAL INDIA LTD & BHELPOWER FINANCE READY TO BANKROLL SJVN PROJECTS WORTH RS 1.18 LAKH CROREState-owned power producer SJVN has signed an MoU with Power Finance Corporation (PFC) for loans to finance its projects worth Rs 1.18 lakh crore. "PFC and the company have signed a Memorandum of Understanding (MoU) for financial assistance to various diversified portfolio of projects, including majorly Renewable Energy projects and thermal generation projects to be set up at a total project cost of about Rs 1,18,826 crore," the SJVN informed the BSE.The term loan financial assistance is tentatively proposed at 70 percent of the project cost, which may be increased for renewable energy projects as per project requirements, it stated. SJVN shares jumped 9.31 percent to a record Rs 83.69 after the announcement, taking the company's market cap to Rs 32,491 crore. In a separate statement, PFC said: "PFC and SJVN Ltd have signed an MoU for providing financial support to various projects, including massive Renewable Energy ventures (Solar, Hydro, and Pumped Storage) totaling 12,178 MW capacity, along with a 660 MW thermal generation project for an estimated project cost of approximately Rs 1,18,826 crore."The MoU was signed by PFC Director, Commercial, Manoj Sharma and SJVN Director, Finance, Akhileshwar Singh, it stated. PFC's financial support in the form of a term loan is tentatively proposed to range from Rs 80,000 crore to Rs 90,000 crore, demonstrating a substantial commitment to the realization of these vital projects.The central government's revenue stream has been bolstered by significant dividend payments from important public sector organizations. The National Thermal Power Corporation (NTPC), India's largest power utility company, gave the government roughly Rs 1,487 crore, according to the Secretary of the Department of Investment and Public Asset Management (DIPAM). The Government has received about Rs 1556 crore and Rs 88 crore as dividend tranches from Coal India and BHEL, respectively, according to a post on X by the Secretary of the Department of Investment and Public Asset Management.Dividends are a form of reward that companies may choose to provide to their shareholders from a portion of their earnings. In this case, NTPC, a state-owned company with an installed capacity of 73,824 megawatts (MW) (including Joint Ventures), has contributed to the government's revenue. NTPC aims to become a 130 GW company by 2032. Additionally, the government also received about Rs 1,701 crore from Power Grid Corporation of India (PGCIL) as a dividend on a previous occasion. The revenue collection through dividends demonstrates the financial health and performance of these public sector companies. It contributes to the government's efforts to manage its fiscal situation effectively. The government also got sizeable dividend payments from Indian Oil Corporation (Rs 2,182 crore) and Bharat Petroleum Corporation (Rs 460 crore) earlier in September, a sign of these energy behemoths' sound financial standing. These monetary inflows from public sector businesses fund several government programs and projects, assisting India's economic development.
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