DIPAM, World Bank sign agreement for advisory services for asset monetization

The Department of Investment and Public Asset Management (DIPAM) signed an agreement with the World Bank on November 16, 2020 to provide advisory services for asset monetization. DIPAM mainly handles the Indian government's disinvestment programme. 

The department is mandated to facilitate asset monetization of non-core assets of government such as the Central public sector enterprises (CPSEs) under strategic disinvestment.

The central government has set a target of raising Rs 2.10 lakh crore from disinvestment in the current fiscal year. The target includes Rs 1.20 lakh crore, which has to be raised through CPSE disinvestment.

DIPAM-World Bank advisory project

•As per the agreement signed between DIPAM and World Bank, the international bank will provide its advisory services for asset monetization under its advisory project, which has been approved by the Union Finance Minister Nirmala Sitharaman, 

•The World Bank advisory project will analyze public asset monetization in India and benchmark its institutional models against best international practices.

•The project aims at supporting the development of operational guidelines and capacity building for its implementation.

•The advisory project will facilitate and help accelerate the non-core asset monetization process in India. 

•It will help unlock the value of the unused or marginally used assets, which have the potential to substantially boost financial resources for further investments and growth.

•The amount raised through the sale of non-core assets would be counted as a part of the disinvestment proceeds.

What is DIPAM?

The Department of Investment and Public Asset Management aims to promote people’s ownership of Central Public Sector Enterprises to share in their prosperity through disinvestment.

It aims to enable efficient management of public investment in CPSEs to help accelerate economic development and boost the Government’s resources for higher expenditure

Background

The Department of Disinvestment was first set up as a separate Department in December 1999 and it was later renamed as the Ministry of Disinvestment in September 2001. The Department of Disinvestment was then counted as one of the departments under the Ministry of Finance from May 2004. 

On April 14, 2016, the department was renamed as Department of Investment and Public Asset Management.