What is meant by 'Strategic Disinvestment' ? Explain the different methods of Disinvestment adopted since the re-christening of Department of Disinvestment (DOD) as Department of Investment and Public Asset Management (DIPAM). Briefly discuss the achievements and outcomes of these disinvestments.

Parliamentary Oversight

Committees advocate time-bound disinvestment and fertiliser PSU modernisation, addressing delays1 in ageing PSUs. They have emphasised the need for modernisation in sectors like fertilisers to overcome institutional inertia and improve efficiency.

Diverse Disinvestment Tools

Minority stake sales via IPOs (LIC), ETFs (CPSE-ETF, Bharat-22), and strategic sales like Dredging Corporation’s transfer have raised significant funds and improved operations. Buybacks by PSUs have also been used to manage government holdings effectively.

National Monetisation Pipeline2 2.0

Targets ₹16.72 lakh crore (FY26-FY30), institutionalising asset monetisation to complement equity disinvestment and boost infrastructure financing, thereby expanding the government’s resource mobilisation avenues.

Challenges

Delays in fertiliser and defence PSU disinvestments due to political resistance, valuation disputes, and strategic sensitivities highlight execution hurdles, as seen in prolonged timelines for National Fertilisers Limited and Rashtriya Chemicals and Fertilisers Limited.

Align with Atmanirbhar Goals

Use Defence Acquisition Procedure43 2020 to promote indigenous defence manufacturing while optimising PSU roles in strategic sectors.

Strengthen Oversight

Time-bound targets and parliamentary monitoring to reduce delays and improve accountability in disinvestment processes.

Digital Platforms

Leverage Digital India for efficient asset management and investor engagement, streamlining processes and expanding outreach.