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 divestment. 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 merger, the official added, 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 divestment 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.
Harsh Kumar, Business Standard
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