Dividends are declared at the Annual General Meeting of the shareholders based on the recommendation by the Board.

The Board may recommend dividends, at its discretion, to be paid to members. The Board may also declare interim dividends.

Usually, the factors that may be considered by the Board before making any advice for the dividend include, but are not limited to, future capital expenditure plans, profits earned during the financial year, cost of raising funds from alternate sources, cash flow position and applicable taxes including tax on dividend, subject to the Government guidelines:

As per the guideline from the Government of India, all profit-making PSUs which are essentially commercial enterprises should declare the higher of a minimum dividend of 20% on equity or a minimum dividend payout of 20% of post-tax profit.

The minimum dividend pay-out in respect of enterprises in the oil, petroleum, chemical and other infrastructure sectors such as us should be 30% of post-tax profits

Dividend by ONGC