
The Indian government is following a carefully calibrated asset monetisation strategy to maintain market stability and protect investor interests, according to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM).
Speaking to CNBC-TV18 about the disinvestment roadmap, Chawla emphasised that the approach is designed to optimise value while ensuring that public sector enterprises (PSEs) play their rightful role in the economy.
Chawla clarified that the merger of the Department of Public Enterprises with DIPAM was intended to align corporate strategy with asset management. This integrated approach ensures that public sector undertakings (PSUs) remain competitive, generate wealth for common citizens, and provide returns for investors. He stressed that private sector participation must grow, but the public sector has a unique responsibility to safeguard the interests of minority shareholders and optimise value for all stakeholders.
The government’s strategy is built on multiple pillars, including robust corporate performance monitoring, capital expenditure management, consistent dividend flows, and a structured asset monetisation approach.
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Chawla highlighted that PSUs contribute nearly ₹4 lakh crore in capital investment annually, a figure that is closely tracked to ensure its effectiveness. He also pointed out that dividends from PSUs serve as a key mechanism for wealth distribution, benefiting ordinary investors and minority shareholders.
A notable example of this strategy, Chawla noted, was the listing of Life Insurance Corporation of India (LIC), which allowed for a transparent market valuation of ₹6 lakh crore. This demonstrated the importance of measured steps in the disinvestment process — ones that align with market conditions and investor appetite while preserving asset value.
Addressing the modest ₹47,000-crore disinvestment target for the fiscal year (FY26), Chawla underscored that the government is committed to strategic, rather than aggressive, disinvestment. He refrained from disclosing specifics regarding upcoming PSU listings but assured that ongoing projects are progressing as planned, with timely announcements to be made in due course.
(Edited by : Shoma Bhattacharjee)
First Published: Feb 3, 2025 7:38 PM IST