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Centre shifts disinvestment advice to department of Economic Affairs (Relevant for GS Prelims and GS Mains Paper II)

In keeping with its ongoing efforts to streamline the disinvestment process, the government transferred the role of advising the government on how to utilise the proceeds from disinvestment from the Department of Investment and Public Asset Management (DIPAM) to the Department of Economic Affairs.

According to a notification issued by the Cabinet Secretariat changing the Allocation of Business rules, the Department of Economic Affairs in the Finance Ministry will now be in charge of “financial policy in regard to the utilisation of the proceeds of disinvestment channelised into the National Investment Fund.

About National Investment Fund
The Centre had created a National Investment Fund in 2005 in which the proceeds from the disinvestment of Central Public Sector Enterprises (CPSEs) were to be channelised.



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