Government of India

The Department of Investment and Public Asset Management (DIPAM), currently headed by Finance Secretary Tuhin Kanta Pandey, executes equity divestments and asset monetization under policy guidance from the Cabinet Committee on Economic Affairs. Each Central Public Sector Enterprise retains its own board of directors, appointed by the administrative ministry, but strategic decisions around stake sales, public listings, and asset transfers flow through DIPAM and ultimately to the Prime Minister's Office.

The National Monetisation Pipeline (NMP), announced in the 2021 Union Budget and managed by NITI Aayog, identifies existing government infrastructure—toll roads, railway stations, gas pipelines, airports—for revenue-generating leases to private operators. Unlike divestment, which transfers equity positions, NMP transactions retain public ownership of the underlying asset and offer the investor structured concession rights (via the Infrastructure Investment Trust, or InvIT, model) for 25- to 30-year periods. This structure appeals to foreign sovereign wealth entities seeking inflation-linked cash flows without direct equity exposure to Indian CPSEs.

The Reserve Bank of India holds approximately 822 tonnes of gold through an independent statutory mandate, with roughly half stored domestically and the rest custodied at the Bank of England and Bank for International Settlements. These reserves back a portion of the Indian rupee's monetary base and are not managed as a sovereign wealth fund—Sales or transfers require specific board deliberation and are not used to fund general government expenditure. They appear on the RBI's own balance sheet, legally distinct from the CPSE equity portfolio managed by DIPAM.

The government has consolidated its large public-sector banking operations through mergers—for instance, merging 10 banks into four larger entities in 2020—but retains majority equity stakes in all 12 public-sector banks. Strategic divestment to below-51-percent in banking remains politically sensitive; the 2021-22 Union Budget's call for privatization of two public-sector banks has stalled as of early 2025 (per public record). DIPAM continues to raise capital through secondary market offerings while maintaining regulatory control.

The Government of India does not operate a sovereign wealth fund-style commitment program in the manner of GIC or ADIA. Its primary exposure to private markets is via the National Investment and Infrastructure Fund (NIIF)—a quasi-sovereign anchor anchored by the government but managed independently—which makes LP commitments to Indian infrastructure and growth equity funds. Separately, the India Infrastructure Finance Company Limited (IIFCL) provides credit enhancement that indirectly enables third-party fund participation in project finance SPVs.

As stated by the Ministry of Finance's New Public Sector Enterprise Policy (2021), sectors designated as 'strategic'—Atomic Energy, Space, and Defence (excluding select privatizations like HAL share sales); Railways (excluding station and track monetization); and certain mineral exploration segments—are retained, meaning no equity is sold to private or foreign buyers. Coal, petroleum, steel, and telecommunications remain open to minority divestment but have seen limited majority exits.

The Lutyens' Bungalow Zone, centered on New Delhi's Raisina Hill, houses the Rashtrapati Bhavan, the Prime Minister's official residence, and over 1,000 government bungalows and institutional buildings on approximately 28 square kilometers of land. The Land and Development Office (L&DO), under the Ministry of Housing and Urban Affairs, administers these parcels and allocates them on leasehold terms to government entities, foreign missions, and select private parties. Direct monetization via auction is politically improbable given the zone's symbolic and diplomatic centrality, though ground-rent revisions and license fee restructurings periodically generate ministerial discussion.