BT India@100: Govt will push composite disinvestment strategy, says DIPAM secretary

Speaking at the BT India@100 event, Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), outlined the government's continued focus on a comprehensive and calibrated approach to disinvestment, asserting that investor confidence remains strong despite global headwinds.

Chawla emphasized that while geopolitical uncertainties were anticipated earlier this year, the government has proactively shaped a strategy aimed at building resilience across the economy and public sector. “We started monitoring the capex of public enterprises from the beginning of the year, collecting granular data every month,” he said. According to Chawla, as of end-July, public sector undertakings (PSUs) had already achieved 29% of their annual capital expenditure target within the first four months.

Highlighting the growing role of PSUs in the Indian economy, Chawla noted that they have matched private sector performance and collectively “account for almost 15-20% of the total market capitalisation” while contributing 25% of all dividend income — an indicator of the trust minority shareholders place in them.

Addressing the future of disinvestment, Chawla stated that the government would not put big-ticket listings or follow-on offers on the back burner. Instead, he said, DIPAM would pursue a “composite strategy resting on four pillars: corporate performance, fair dividends, sustainable capex, and calibrated disinvestment.”

He clarified that calibrated disinvestment would take multiple forms — offer for sale, public offerings, or strategic disinvestment — based on the 2021 disinvestment policy. The policy ensures that public sector presence remains in strategic areas vital for national security and economic stability, while non-strategic sectors are gradually opened up for greater private participation.

“Disinvestment and closure of public enterprises should be seen through the same lens,” he said. “Though different at the micro level, in equilibrium, they create space for the private sector to grow — something we actively encourage.”

The remarks underscore the government's continued reliance on PSUs not just as economic engines, but also as vehicles for investor returns and long-term capital formation, even as it seeks to rebalance public-private roles in India's economic architecture.