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DPE and Dipam Merger Plan: CPSE Policy and Disinvestment

17 April 20251 min read
ECONOMYDPE and DipamMerger Plan: CPSEPolicy andDisinvestment17 April 2025safalsetu.com

Why in the news

The government plans to fold the Department of Public Enterprises into the Department of Investment and Public Asset Management, raising the question whether CPSE management or disinvestment will be the focus.

Key facts

  • Goal: efficiency, stronger CPSE performance, less overlap.
  • Stance seems to be moving from aggressive disinvestment to value creation.
  • Recent Budgets set no explicit disinvestment targets.
  • FY25 so far: equity markets raised over ₹3.7 trillion (up 90%), disinvestment just ₹10,000 crore.

Background

  • The 2021-22 Budget sought minimal presence in strategic sectors and exit from non-strategic ones.
  • DPE joined the Finance Ministry in 2021, with limited progress.

Concerns

  • Disinvestment focus was inconsistent; targets mostly missed.
  • No political consensus (“selling family silver”).
  • CAG 2022: net worth of 88 companies fully eroded.

Exam angle

  • Parent ministry: Finance.

Test yourself

1. Which two departments did the Centre plan to merge under the Ministry of Finance?

The Department of Public Enterprises and Dipam were to merge.

2. How much was mobilised through disinvestment in FY25 so far, per the notes?

Only ₹10,000 crore came via disinvestment.

3. According to the 2022 CAG report, how many companies had their net worth completely eroded?

The net worth of 88 companies was completely eroded.

This topic is part of Daily Current Affairs 17 April 2025 (21 topics).

All topics of the dayDay quizApril 2025

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