Just minutes after the Ministry of Railways withdrew its decision for IRCTC to share 50 percent of convenience fees with the government, DIPAM Secretary Tuhin Kanta Pandey said that his department’s advice to other ministries had been that in case of listed state-owned companies, they should be mindful of the interests of minority shareholders.
“Our clear advice to all the departments has always been that any policy decision with respect to listed PSUs, should be taken with the interest of minority shareholders in mind. The railways has evaluated the pros and cons and withdrawn its decision,” Pandey told Moneycontrol.
DIPAM is the Department of Investment and Public Asset Management, and comes under the Finance Ministry. Its role is to privatize PSUs or take them public through initial public offerings, and shed stake in listed PSUs through offer-for-sales. It also monitors dividends paid and share buybacks by PSUs.
DIPAM’s role is especially crucial this year as the centre looks to meet an ambitious divestment target of Rs 1.75 lakh crore. Having already successfully carried out the sale of Air India to Tata Sons, Pandey’s task for the remainder of the year is to privatize Bharat Petroleum, among others, and take LIC public.