A lot of key developments were witnessed by the Department of Investment and Public Asset Management (DIPAM) in the year 2023 ranging from steadfast commitment to value creation, strategic divestment, and consistent financial planning.
The Ministry of Finance has highlighted the emphasis on value creation in Central Public Sector Enterprises (CPSEs). Since the introduction of the New PSE policy in January 2021, the NSE CPSE and BSE CPSE Indices have surpassed benchmarks. Nifty 50 and BSE SENSEX have registered a rise of 44.00% and 40.29% respectively whereas the NSE CPSE and BSE CPSE Indices have outperformed with a big margin with returns of 160.49% and 128.66% respectively till November 2023.
This year, DIPAM also successfully launched the IPO for the Indian Renewable Energy Development Agency (IREDA), a state-run NBFC in November.
IREDA was successfully listed on the stock Exchanges, and the government has realised Rs 858.36 crore as Disinvestment Receipt. Also, the company has realised approximately Rs 1,290 crore through the issuance of 15% fresh equity.
The Offer for Sale (OFS) route has been actively pursued by the government for divesting its shareholding in CPSEs. Noteworthy transactions involve CPSEs like HAL (Rs 2,910.39 cr), Coal India Limited (Rs 4,185.69 cr), RVNL (Rs 1,365.61 cr), SJVN Limited (Rs 1,349.27 cr), and HUDCO (Rs 1,049.95 cr). They have collectively yielded Rs 10,860.91 crore.
The stocks involved generally experienced an uptrend post-OFS, contributing to capital gains for investors, the ministry said.
DIPAM has also implemented a Consistent Dividend Policy over the years, with the total dividend receipts from CPSEs in FY 2022-23 at an impressive Rs 59,533 crore, surpassing the Revised Estimates.
In the current fiscal year, the government has realised Rs 26,644 crore as dividend receipts from CPSEs as of December 4, 2023.
The Ministry further said that looking ahead, DIPAM is actively pursuing strategic disinvestment in entities like IDBI Bank Limited, PDIL, HLL Life Care Limited, NMDC Steel Limited, Shipping Corporation of India, and BEML Ltd with Expressions of Interest (EoIs) having been issued for these transactions.
In 2023, the Department of Public Enterprises (DPE) also exhibited a commitment to fostering economic growth and efficiency across various key areas.
According to the Ministry of Finance, the DPE has focused on monitoring of Capital Expenditure (CAPEX) within CPSEs, embracing digital transformation by implementing an online MoU Dashboard for the Performance Assessment of CPSEs and ensuring enhancements in procurement under the DPE’s purview. As of 30 November 2023, against an estimated expenditure of Rs 7.33 lakh crore, an achievement of Rs 4.88 lakh crore, about 66.61%, has been reported.
In alignment with the government’s support measures for MSEs, CPSEs have demonstrated a robust commitment to inclusive procurement. Data released by the ministry said that Rs 1,33,720 crore was procured by CPSEs through GeM till November 2023 as against Rs 48,730 crore till November 2022.
Procurement by CPSEs through GeM has grown around 2.7 times YoY and from MSEs stands 10% more than the set target as of 30 November, 2023.
These achievements underscore the DPE’s pivotal role in driving economic progress and fostering a conducive environment for sustainable growth within the public sector.