Government seeks Rs 19,000 crore dividend from oil companies

NEW DELHI: The government is seeking a record Rs 19,000 crore in dividend from state oil companies — about 5% more than last year— to shore up its finances, according to people familiar with the matter. ONGCNSE -0.48 % and Indian OilNSE -0.79 %, the biggest in the club, have been asked to pay about 60% of the total.

The finance ministry has demanded that oil companies should maintain or increase the dividend payout this year. Company executives say the demand is being made even though profits have have fallen from last year.

Executives also complained that the government is seeking high dividend even though its stake in the companies have come down.