DPE-Dipam merger may be completed in 6 months to streamline operations

The official further explained that the government's new approach to CPSEs has evolved

The Union government has initiated the process to merge two key finance ministry departments — the Department of Public Enterprises (DPE) and the Department of Investment and Public Asset Management (Dipam) — in an effort to streamline operations and weed out duplication of work, according to a senior government official.

 

“Approximately 80 per cent of the work of both departments already involves close coordination. To improve efficiency and facilitate smoother operations for CPSEs (Central Public Sector Enterprises), the government has started working on the merger, which is expected to be completed within the next six months,” the official said.

 

The official explained that the government’s approach to CPSEs has evolved. “The merger is crucial because the government is now focused on value creation rather than just disinvestment. Since July 2024, following the retirement of Ali Raza Rizvi, the Dipam secretary has been overseeing DPE’s work. Therefore, merging the two departments is only logical,” the official added.

 

The official further said that the merger is expected to create greater synergy, with significant reforms and large-scale investments planned to drive growth, development, and job creation by CPSEs.

 

According to current allocation of business rules, Dipam’s mandate includes managing the central government’s investments in equity, particularly the disinvestment of equity in CPSEs. It oversees the sale of central government equity through various methods such as offer for sale, private placement, or other means within CPSEs. 

 

While post-disinvestment issues, including those related to the exercise of call options by strategic partners, remain under the administrative ministry or department, Dipam is consulted when needed.

 

The Department of Disinvestment was established as a separate entity on December 10, 1999, and was later renamed Ministry of Disinvestment on September 6, 2001. 

 

On May 27, 2004, it became a department under the Ministry of Finance. On April 14, 2016, the department was renamed Department of Investment and Public Asset Management or Dipam.

 

The DPE serves as the central body for CPSEs, formulating policies on performance improvement, financial delegation, autonomy, and personnel management. 

 

It also collects data through the public enterprises survey and coordinates with various ministries, CPSEs, and other relevant organisations.