The Union Government is reportedly moving ahead with plans to merge the Department of Investment & Public Asset Management (DIPAM) and the Department of Public Enterprises (DPE), both of which function under the Ministry of Finance. The merger is aimed at bringing operational synergy and eliminating duplication of work between the two key departments.
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Sources indicate that around 80 per cent of the functions carried out by DIPAM and DPE are interrelated, particularly in matters concerning Central Public Sector Undertakings (CPSUs). DIPAM primarily manages investment and disinvestment processes, while DPE handles the regulatory framework and oversees the closure of public enterprises. The integration is expected to streamline operations, reduce administrative overlap, and significantly enhance the efficiency and performance of CPSUs.
The merger plan has been on the radar of the Narendra Modi government for some time and was also a part of its “hundred days programme” in anticipation of a renewed mandate in the 2024 Lok Sabha elections. The government sees the unification of the two departments as a critical step toward achieving broader economic reforms, facilitating greater investment, and generating employment opportunities.
By combining the strengths and responsibilities of DIPAM and DPE, the Centre aims to create a cohesive structure for public asset management and policy implementation in the public enterprise sector.
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