Bharat Petroleum Corporation Limited (BPCL), one of India's leading oil and gas companies, has been directed by the Central Pollution Control Board (CPCB) to pay an environmental compensation of Rs 1.00 crore. This directive comes as a result of BPCL's failure to comply with prescribed timelines set by the pollution control authority.

Regulatory Action

The CPCB issued the direction under Section 5 of the Environment (Protection) Act, 1986. The non-compliance relates to CPCB directions dated September 18, 2020, and November 11, 2024. According to the LODR (Listing Obligations and Disclosure Requirements) filing by BPCL, the company received this directive on July 24, 2025.

Company's Response

In response to the CPCB's directive, BPCL has stated that it will seek legal advice on the next course of action. The company's management believes that this development will have no material impact on its operations or financial standing.

Compliance Timeline

The environmental compensation is specifically for BPCL's failure to adhere to the timelines prescribed in the CPCB's earlier directions. These directions, issued in September 2020 and November 2024, likely pertained to environmental norms or pollution control measures that the company was expected to implement.

Regulatory Disclosure

As per regulatory requirements, BPCL has duly informed the stock exchanges about this development.

Implications

While BPCL maintains that there will be no material impact from this directive, it underscores the increasing regulatory scrutiny on environmental compliance in the oil and gas sector. Companies in this industry are under growing pressure to adhere to strict environmental norms and timelines set by pollution control authorities.

The outcome of BPCL's legal consultation and any subsequent actions will be closely watched by industry observers and environmental activists alike. This incident serves as a reminder of the importance of timely compliance with environmental regulations in the energy sector.

Bharat Petroleum Corporation Limited (BPCL), one of India's leading oil and gas companies, has announced a final dividend of Rs. 5 per equity share for the financial year 2024-25, subject to shareholder approval. This announcement comes as part of the company's commitment to rewarding its shareholders.

Dividend Details

The Board of Directors of BPCL has recommended a final dividend of 50% on the face value of Rs. 10 per equity share, translating to Rs. 5 per share. This decision was made during the board meeting held on April 29, 2025. The dividend payout is subject to approval by shareholders at the upcoming Annual General Meeting (AGM) scheduled for August 2025.

Key Dates and Eligibility

• Record Date: July 31, 2025
• Shareholder Eligibility: Shareholders holding BPCL equity shares as of the record date will be eligible for the dividend.
• Document Submission Deadline: August 4, 2025, by 4:00 P.M.

Tax Implications and Compliance

In line with the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividends paid or distributed by the company on or after April 1, 2020, are taxable in the hands of shareholders. BPCL will be required to deduct Tax at Source (TDS) at prescribed rates for various categories of shareholders. Key points regarding TDS:

1. For resident individual shareholders:

   • TDS rate: 10% if dividend exceeds Rs. 10,000 annually
   • No TDS if dividend is below Rs. 10,000 in a fiscal year
   • Exemption available on submission of Form 15G/15H

2. For non-resident shareholders:

   • TDS rate: 20% plus applicable surcharge and cess
   • Option to avail benefits under Double Taxation Avoidance Agreement (DTAA)

Shareholder Action Required

1. Update Personal Information: Ensure that PAN, residential status, category, email address, and residential address are updated with the Depository Participant or Registrar and Transfer Agent.

2. Bank Account Details: Register/update complete bank account information for electronic dividend payment.

3. Document Submission: For tax exemptions or lower TDS rates, submit relevant documents including Form 15G/15H online by August 4, 2025.

4. Non-Resident Shareholders: Provide necessary documentation for availing DTAA benefits, including Tax Residency Certificate and Form 10F.

Electronic Payment and PAN-Aadhaar Linking

BPCL emphasized that dividends will be paid only through electronic mode. Shareholders are advised to ensure their PAN is linked with Aadhaar and to file their income tax returns to avoid higher tax deduction rates.

The company has set up online portals for document submission and has provided detailed guidelines to ensure smooth processing of dividend payments and tax compliance. Shareholders are encouraged to take necessary actions within the stipulated timelines to ensure proper dividend credit and optimal tax treatment.

This dividend announcement reflects BPCL's strong financial position and its commitment to creating value for its shareholders, even as it navigates the dynamic energy sector landscape.