Union Government renames Department of Disinvestment as DIPAM
Union Government has renamed Department of Disinvestment as Department of Investment and Public Asset Management (DIPAM). In this regard, the Union Finance Ministry has issued notification.
The renaming decision aims at proper management of Central government’s investments in equity and also its disinvestment proceeds in central public sector undertakings (PSUs).
Key facts
- DIPAM will work under Union Finance Ministry.
- It has been mandated to advise the Union Government in the matters of financial restructuring of PSUs and also for attracting investment through capital markets.
- It will deal with all matters relating to sale of Union Government’s equity through private placement or offer for sale or any other mode in the erstwhile Central PSUs.
- Henceforth all other post disinvestment matters will continue to be handled by the Union Finance Ministry or concerned department in consultation with DIPAM on necessity.
Background
- Union Finance Minister Arun Jaitley in his budget speech for 2016-17 had announced about the renaming of the Department of Disinvestment.
- He also had mentioned that a comprehensive approach will be adopted for efficient management of government investment in Central PSUs by addressing issues such as capital restructuring, bonus shares, dividend etc.
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Month: Current Affairs - April, 2016