The finance ministry has halved its target of raising additional resources from public sector oil companies through special dividends.
Instead of the originally proposed Rs 6,000 crore (Rs 60 billion), the finance ministry has decided to raise only around Rs 3,000 crore (Rs 30 billion) through special dividend.
In a communication to the petroleum ministry, the finance ministry has said the former should make arrangements for raising around Rs 3,000 crore during the current financial year as special dividend. It has, however, not specified the amount to be raised from each oil PSU.
Oil sector PSUs have not taken kindly even to the truncated demand from the finance ministry.
They are of the opinion that their investment plans leave them with little surplus cash.
Whatever we will be forced to give to the government will be at the cost of our development, said a senior PSU official.
Concerned at the prospect of a huge revenue shortfall this fiscal, the government had decided to ask the cash-surplus oil PSUs to shell out more funds for the central kitty by declaring special dividends for 2001-02.
The finance ministry is particularly concerned about the estimated shortfall of Rs 15,000 crore (Rs 150 billion) in revenue collection during the year.
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