Government's Focus Shifts from Disinvestment to Wealth Creation in CPSEs

DIPAM Secretary Tuhin Kanta Pandey announces a shift in strategy towards improving the performance and market valuations of Central Public Sector Enterprises (CPSEs) rather than prioritizing disinvestment. Market capitalisation of listed public sector entities has significantly increased, and the government emphasizes value creation over meeting disinvestment targets.

DIPAM Secretary Tuhin Kanta Pandey announced a paradigm shift in government strategy, aimed at enhancing the performance and market valuations of Central Public Sector Enterprises (CPSEs) to maximize wealth creation rather than merely achieving disinvestment targets.

Pandey highlighted that the market capitalisation of 77 listed public sector entities, including banks, insurance companies, and CPSEs, has surged fourfold in three years to approximately Rs 73 lakh crore.

Pandey attributed the improved performance to better capital expenditures and management incentives aligned with CPSE performance. He stressed a supportive disinvestment strategy, integrated with asset management strategies focusing on value creation rather than fiscal pressures.