India to step up dividend pressure on state-run firms
Weak tax revenues, higher spending and lacklustre returns from asset sales make it harder for govt to invest, plug budget holes
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New Delhi
WITH funds running short to sustain an infrastructure spending spree that's underpinning India's economic growth, Finance Minister Arun Jaitley will step up pressure on state-run companies to pick up the slack.
Mr Jaitley plans to meet public-sector companies in November - two months earlier than usual - to urge them to pay higher dividends if they don't invest more, according to two people familiar with the discussions. The dividends will go to the government, which is the majority shareholder in companies such as Coal India Ltd, the world's largest producer of the fuel.
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