BT India @ 100: Govt focused on market cap growth of PSUs, not just disinvestment, says DIPAM secy

Speaking at the BT India@100 event, Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), underlined a nuanced evolution in the government's disinvestment strategy — one that focuses not merely on selling stakes, but on strengthening public sector undertakings (PSUs) through better market capitalization and governance.

Chawla addressed a common perception shift: from the government’s earlier stance of “not being in the business of doing business” to what now appears as a more value-driven approach to PSU management.

Clarifying the position, he said, “There is no contradiction between the two. The idea is to create space in non-strategic sectors for private enterprise to flourish, while also ensuring the public sector plays a vital role in delivering public goods and maintaining critical supply chains.”

He emphasised that the government’s economic policy is based on continuity, not abrupt shifts. “Policies evolve, and the roles of the public and private sectors are complementary, especially in strategic and welfare-centric areas,” he said.

On the issue of corporate governance — often cited as a hurdle for investor confidence in listed PSUs — Chawla pointed to major reforms in leadership selection. “Our government has made the entire process efficient, transparent, and free from interference. Today, PSU leaders are among the best in the world,” he asserted, adding that their calibre is evident in how many are now being recruited by top private firms for leadership roles.