DIPAM stands for the Department of Investment and Public Asset Management. It is one of the Departments under the Ministry of Finance. It works in the Government investments in equity as well as disinvestment of equity in Central Public Sector Undertakings. The Department of Disinvestment was formed on 10th December 1999. On 14th April 2016, it was renamed the Department of Investment and Public Asset Management (DIPAM).
The major domain of their work pertains to Strategic Disinvestment, Minority Stake Sales, Asset Monetisation and Capital Restructuring. For example, if the Central Government has to sell some part of their stake in a company like BPCL, it is DIPAM who looks into it. It is DIPAM who advise the Central Government in the matter related to the financial restructuring of PSUs.
The Prime Minister of India, Narendra Modi, has already stressed that “the government has no business to be in business.” Thus, in the next one or two years, we can see the government selling some of their equity stakes to the private sector. Whether this privatization through disinvestment is correct or not is a different debate. But, it is DIPAM that dives deep into these financial restructuring matters.