New Delhi, Dec 31 (.) The Department of Investment and Public Asset Management (DIPAM) continued to play a key role in strengthening public finances and enhancing value creation in Central Public Sector Enterprises (CPSEs) during 2025 through higher dividend receipts, successful market-based disinvestment, and focused capacity building initiatives.
Despite progressive dilution of the government’s shareholding in CPSEs through disinvestment, dividend payouts have shown a steady increase since FY 2020-21. The rise has been attributed to improved capital management practices, stronger accountability mechanisms, and calibrated spacing of disinvestment transactions, as per the Year-Ender note shared by the Ministry of Finance.
Dividends from CPSEs remain an important source of non-tax revenue for the Centre. Dividend payouts are deliberated through an inter-ministerial forum, the Committee for Monitoring of Capital Management and Dividends by CPSEs (CMCDC).
Over the past five years, dividend receipts have consistently exceeded the Revised Estimates (RE), reflecting improved financial performance of CPSEs.
According to data released by the Ministry of Finance, dividend receipts rose from Rs 39,750 crore in 2020-21 against an RE of Rs 34,717 crore to Rs 74,017 crore in 2024-25, surpassing the revised estimate of Rs 55,000 crore. The trend underscores significant improvement in dividend performance across CPSEs.
In 2025, DIPAM also leveraged market mechanisms for value creation through the Offer for Sale (OFS) route. A 3.61 per cent stake in Mazagon Dock Shipbuilders Limited (MDL) was divested from the government’s holding of 84.83 per cent. The OFS was launched on April 4, 2025, for non-retail investors and on April 7, 2025, for retail investors.
Following oversubscription, a green shoe option was exercised in the non-retail category, enabling the government to realise Rs 3,673.42 crore. Post-OFS, MDL’s stock price witnessed an upward trend, contributing to capital gains for investors.
As part of its broader value creation agenda, DIPAM also focused on leadership and capacity building within CPSEs. In collaboration with the Capacity Building Commission (CBC), it organised a workshop on enhancing leadership communication skills in New Delhi on January 17, 2025.
The programme targeted CPSE executives working in finance, business development, strategy, and communications, with an emphasis on improving engagement with investors and financial analysts.
Additionally, DIPAM conducted a capacity building programme on the basics of financial markets in association with the National Stock Exchange (NSE) on August 29, 2025, at the India Habitat Centre, New Delhi, for officers and employees.
Through higher dividend mobilisation, successful disinvestment initiatives, and targeted capacity building, DIPAM’s efforts in 2025 contributed to fiscal consolidation, strengthened investor confidence, and advanced long-term value creation in CPSEs.
. VK VAN PRS