Maharashtra State BoardHSC Arts 12th Board Exam
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India Transformed - Economic Issues

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notes

India Transformed - Economic Issues:

1) Ministry of Disinvestment:

The Government of India established a separate ‘Ministry of Disinvestment’ to take care of its disinvestment policy, i.e. the gradual withdrawal of governmental investment in the public sectors. The Government is focusing on reducing its investment in the sectors like mining, petroleum refineries, roads and highways, port trusts, telecommunication, and foreign investments in these sectors are now permitted. The policies of ‘Privatisation, Liberalisation and Globalisation’ (popularly known as ‘KHAUJA’), boosted the confidence of Indian companies and some of them established themselves in global markets by acquiring foreign companies in steel, pharmaceuticals, tea production, and also automobiles sectors. The Department of Disinvestment was set up as a separate Department on 10th December 1999 and was later renamed as Ministry of Disinvestment from 6th September 2001. From 27th May 2004, the Department of Disinvestment is one of the Departments under the Ministry of Finance. The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management (DIPAM) from 14th April 2016.

As per the present Allocation of Business Rules, the mandate of the Department is as follows:

- All matters relating to the management of Central Government investments in equity including disinvestment of equity in Central Public Sector Undertakings.

- All matters relating to the sale of Central Government equity through an offer for sale or private placement or any other mode in the erstwhile Central Public Sector Undertakings.

Note: All other post disinvestment matters, including those relating to and arising out of the exercise of a Call option by the Strategic Partner in the erstwhile Central Public Sector Undertakings, shall continue to be handled by the administrative Ministry or Department concerned, where necessary, in consultation with the Department of Investment and Public Asset Management (DIPAM).

Decisions on the recommendations of Administrative Ministries, NITI Aayog, etc. for disinvestment including strategic disinvestment.

All matters related to Independent External Monitor (s) for disinvestment and public asset management. Decisions in matters relating to Central Public Sector Undertakings for purposes of Government investment in equity-like capital restructuring, bonus, dividends, disinvestment of government equity, and other related issues.

Advise the Government in matters of financial restructuring of the Central Public Sector Enterprises and for attracting investment in the said Enterprises through the capital market. The Unit Trust of India Act, 1963 (52 of 1963) along with subjects relating to Specified Undertaking of the Unit Trust of India (SUUTI).

In 2016, the ‘Ministry of Disinvestment’ was renamed as ‘Department of Investment and Public Asset Management (DIPAM)’.

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