DIPAM likely to decide on commercial matters for PSU privatisation

The panel headed by the cabinet secretary is yet to decide whether DIPAM can be empowered to take decisions on pricing matters for PSU privatisation

The Centre is looking to empower the Department of Investment and Public Asset Management (DIPAM) to take all commercial decisions regarding the sale of a public sector undertaking (PSU), a move that will cut approval layers for privatisation. 

This would include finalising preliminary information memorandum (PIM), request for proposal (RFP), share purchase agreement (SPA), and terms and conditions related to employee retention.

The decision to entrust DIPAM with such powers would be considered by the Core Group of Secretaries on Divestment (CGD) headed by the cabinet secretary as soon as Monday. The plan is being considered after the Centre successfully completed the