The Department of Investment and Public Asset Management (DIPAM) is an administrative body and department under the Ministry of Finance, Government of India, responsible for managing the Central Government’s investments in equity of Central Public Sector Enterprises (CPSEs). It was created in April 2016 (specifically April 14, 2016) by restructuring and renaming the former Department of Disinvestment. The original Department of Disinvestment was set up on December 10, 1999, but the shift to DIPAM broadened the mandate from mere asset sale to the strategic management and optimization of government shareholdings.
DIPAM’s core mechanism revolves around four major areas: Strategic Disinvestment, Minority Stake Sales, Asset Monetisation, and Capital Restructuring. Strategic Disinvestment involves the sale of a substantial portion of government equity along with the transfer of management control. Minority Stake Sales are executed without transferring management control, often using SEBI-approved methods like Initial Public Offer (IPO), Offer for Sale (OFS), and Buyback of shares.
A key recent development is the New Public Sector Enterprise (PSE) Policy for Atma Nirbhar Bharat, notified on February 4, 2021, which provides the overarching guidance for DIPAM's work. This policy aims to minimize the government's presence in non-strategic sectors and retain only a bare minimum presence in four delineated strategic sectors. DIPAM works closely with the NITI Aayog and the Department of Public Enterprises to implement these policies.