Dividend cut from oil firms unlikely; disinvestment goal to be met: Finmin

NEW DELHI: The finance ministry on Tuesday said it does not expect a cut in dividend from oil marketing companies despite these retailers absorbing ₹1 per litre from last week.

Economic affairs secretary in a tweet said there is no plan for reduction in subsidy and disinvestment target will also be met.

He was reacting to reports of reduction of dividend from oil marketing companies, subsidies cut, lesser disinvestment revenue etc. during this fiscal from the Budget estimates.

“...This is completely fabricated. Nothing of this is true at all,” he tweeted.

As far as disinvestment is concerned, the has set an ambitious target of ₹80,000 crore for the current financial year. In the Budget for 2018-19, finance minister Arun Jaitley said the department of investment and public asset management (DIPAM) will move forward to bring i n more exchange traded fund (ETF), including launching a debt fund.

Also three insurance companies National Insurance, United Assurance and Oriental Insurance will be merged to create a single entity, which would be listed on the bourses, he had said.

With regard to hit on stateowned fuel retailer for absorbing ₹1 per litre of petrol and diesel prices, industry sources said the move will bring down their profit by ₹9,000 crore on an annualised basis.