State run Coal India has proposed to pay a higher dividend of INR 5,684.73 crore to the government for 2011-12 compared to the last fiscal.

An official document said that while the state owned Neyveli Lignite Corporation has planned to pay a dividend of INR 439.51 crore to the Coal Ministry for 2011-12.

The document said that "CIL and NLC together are proposing to pay a dividend of INR 6,124.24 crore to the government for 2011-12.”

Coal India had paid a dividend of INR 2,217 crore to the government for last fiscal, while INR 2,210 crore for 2009-10 and INR 1,705 crore for 2008-09.

The higher payout is expected to provide some relief to the government which is facing financial problems due to rising subsidy bill and poor receipt from disinvestment.

Earlier, senior officials of the finance ministry led by secretary of economic affairs Mr R Gopalan have held a series of consultations with the heads of state owned enterprises, including PSU banks, to persuade them to raise the dividend payout to the government.