Disinvestment proceeds contribute to non-tax revenue of the government. Which body manages disinvestment in India?

Correct option is C

Correct Answer: (C) DIPAM

Explanation:

• DIPAM stands for the Department of Investment and Public Asset Management. It is the government body responsible for managing disinvestment in India. DIPAM is part of the Ministry of Finance and handles the sale of stakes in public sector enterprises, which contributes to the non-tax revenue of the government.

Information Booster:

• DIPAM was established to streamline and manage the government’s disinvestment activities, with the primary goal of enhancing the value of public assets.
• The department is also responsible for formulating policies on disinvestment, managing strategic sales, and executing transactions related to the privatization of public sector enterprises.
• Disinvestment proceeds are used for fiscal consolidation and funding various government projects.

Other Options:

• A. NABARD: National Bank for Agriculture and Rural Development, primarily focuses on rural development and agricultural finance.
• B. RBI: Reserve Bank of India, is the central banking institution, responsible for monetary policy and financial regulation
• D. SEBI: Securities and Exchange Board of India, regulates the securities markets in India and protects investor interests.