Home India Cabinet Secretariat In exercise of the powers conferred by clause 3 of article 7...
Date: 2016-04-18 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by clause 3 of article 77 of the Constitution, the President hereby makes the following rules further to amend the Government of India Allocation of Business Rules, 1961, namely

Issued by Cabinet Secretariat · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary:** This notification, dated April 14, 2016, enacts the Government of India Allocation of Business Three Hundred and Twenty Third Amendment Rules, 2016. It amends the Government of India Allocation of Business Rules, 1961, specifically regarding the Department of Disinvestment, which is now substituted by the Department of Investment and Public Asset Management (DIPAM). The rules came into force immediately. **Key Points / Main Content:** * **Amendment Rules:** * These rules are called the Government of India Allocation of Business Three Hundred and Twenty Third Amendment Rules, 2016. * The rules came into force at once. * **Changes to the First Schedule:** * Under the Ministry of Finance, the subheading "Department of Disinvestment" is substituted with "Department of Investment and Public Asset Management (DIPAM)." * **Changes to the Second Schedule:** * Entry 93 is omitted from the Department of Economic Affairs. * The Department of Disinvestment is replaced with the Department of Investment and Public Asset Management (DIPAM) and its related entries. * **Responsibilities of DIPAM:** * Management of Central Government investments in equity, including disinvestment of equity in Central Public Sector Undertakings. * Sale of Central Government equity through various modes in former Central Public Sector Undertakings. * Handling of post-disinvestment matters by the concerned administrative Ministry/Department in consultation with DIPAM. * Decisions on disinvestment recommendations from Administrative Ministries and NITI Aayog. * Matters related to Independent External Monitors for disinvestment and public asset management. * Decisions on Government investment in equity, such as capital restructuring, bonus, dividends, and disinvestment. * Advising the Government on financial restructuring of Central Public Sector Enterprises and attracting investment. * Financial policy regarding the utilisation of disinvestment proceeds channelled into the National Investment Fund. * The Unit Trust of India Act, 1963, along with subjects related to Specified Undertaking of the Unit Trust of India (SUUTI). **Impact Analysis:** * **Central Government:** * *Impact:* The Central Government's investment and disinvestment activities are now managed under the Department of Investment and Public Asset Management (DIPAM). * *Action Required:* Ensure all investment and disinvestment activities are conducted through or in consultation with DIPAM. * **Ministry of Finance:** * *Impact:* The Ministry of Finance's responsibilities are restructured with the change from the Department of Disinvestment to DIPAM. * *Action Required:* Adapt internal processes to reflect the new structure and responsibilities of DIPAM. * **Administrative Ministries/Departments:** * *Impact:* Responsible for handling post-disinvestment matters in consultation with DIPAM. * *Action Required:* Coordinate with DIPAM on post-disinvestment matters and decisions. * **Central Public Sector Undertakings (CPSUs):** * *Impact:* Subject to DIPAM's decisions regarding investment in equity, financial restructuring, and disinvestment. * *Action Required:* Comply with DIPAM's guidelines and decisions related to restructuring, investment, and disinvestment. * **NITI Aayog:** * *Impact:* Continues to provide recommendations on disinvestment, now considered by DIPAM. * *Action Required:* Provide disinvestment recommendations to DIPAM.

Key Entities Referenced

Government of India Allocation of Business Rules, 1961: A set of rules governing the allocation of government business in India. Ministry of Finance Vitta Mantralaya: A ministry of the Government of India responsible for financial matters. Department of Investment and Public Asset Management DIPAM Nivesh aur Lok Parisampatti Prabandhan Vibhag DIPAM: A department under the Ministry of Finance, Government of India, responsible for managing government investments and disinvestment. NITI Aayog: A policy think tank of the Government of India. Central Public Sector Undertakings: Companies in which the direct holding of the Central Government is 51% or more. National Investment Fund: Fund to channelize the proceeds of disinvestment. The Unit Trust of India Act, 1963: An act of the Indian Parliament relating to the Unit Trust of India. Specified Undertaking of the Unit Trust of India SUUTI: A special purpose vehicle created to take over certain assets of the erstwhile Unit Trust of India (UTI).
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(क) साधारण शेयर म < सरकारी िविनधान जसै े पूंजीगत पुनस\रचना,,,, बोनस,,,, लाभांश,,,, सरकारी साधारण शेयर का िविनवेश तथा अLय संबिं धत मु]’ के (cid:10)योजन के िलए केLMीय पिNलक सOे टर उपQम स ेसंबिं धत मामल’ म< िविनW चय । (ख) केLMीय पिNलक सेOटर उ^म’ कY िव#ीय पुनसर\ चना के मामल’ म < तथा पूंजी बाजार के माUय म से िविनधान को आकHषत करने के िलए सरकार को सलाह देना। 5. रा(cid:14)ीय िविनधान िनिध म< (cid:10)ा5 *ए िविनवेश आगम’ के उपयोग कY (cid:10)णाली कY बाबत म < िव#ीय नीित । 6. भारतीय यिू नट _@ट का िविन‘दI उपQम (एसययू ूटीआई) सबं ंधी िवषय’ सिहत भारतीय यूिनट _@ट अिधिनयम,,,, 1963 (1963 का 52) ।”””” । (cid:10)णब मुखजT रा(cid:14)पित [[[[फा.स.ं 1/21/6/2016-मंि>.]]]] दीि5 उमाशंकर,,,,संयु% सिचव CABINET SECRETARIAT NOTIFICATION New Delhi, the 14th April, 2016 S.O.1435(E).—In exercise of the powers conferred by clause (3) of article 77 of the Constitution, the President hereby makes the following rules further to amend the Government of India (Allocation of Business) Rules, 1961, namely:- 1. (1) These rules may be called the Government of India (Allocation of Business) Three Hundred and Twenty Third Amendment Rules, 2016. (2) They shall come into force at once. 2. In the Government of India (Allocation of Business) Rules, 1961,- (a) in THE FIRST SCHEDULE, under the heading “13. Ministry of Finance (Vitta Mantralaya)”, for the sub-heading “(iv) Department of Disinvestment (Vinivesh Vibhag)”, the following sub-heading shall be substituted, namely:- “(iv) Department of Investment and Public Asset Management (DIPAM) (Nivesh aur Lok Parisampatti Prabandhan Vibhag (DIPAM))”; (b) in THE SECOND SCHEDULE, under the heading “MINISTRY OF FINANCE (VITTA MANTRALAYA)”,- (i) under the sub-heading “A. DEPARTMENT OF ECONOMIC AFFAIRS (ARTHIK KARYA VIBHAG)”, entry 93 shall be omitted;¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3 (ii) for sub-heading “D. DEPARTMENT OF DISINVESTMENT (VINIVESH VIBHAG)”, and the entries relating thereto, the following shall be substituted, namely:- “D. DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT (DIPAM) (NIVESH AUR LOK PARISAMPATTI PRABANDHAN VIBHAG (DIPAM)) 1 (a) All matters relating to management of Central Government investments in equity including disinvestment of equity in Central Public Sector Undertakings. (b) All matters relating to sale of Central Government equity through offer for sale or private placement or any other mode in the erstwhile Central Public Sector Undertakings. Note:- All other post disinvestment matters, including those relating to and arising out of the exercise of Call option by the Strategic Partner in the erstwhile Central Public Sector Undertakings, shall continue to be handled by the administrative Ministry or Department concerned, where necessary, in consultation with the Department of Investment and Public Asset Management (DIPAM). 2. Decisions on the recommendations of Administrative Ministries, NITI Aayog, etc. for disinvestment including strategic disinvestment. 3. All matters related to Independent External Monitor(s) for disinvestment and public asset management. 4(a) Decisions in matters relating to Central Public Sector Undertakings for purposes of Government investment in equity like capital restructuring, bonus, dividends, disinvestment of government equity and other related issues. (b) Advise the Government in the matters of financial restructuring of Central Public Sector Enterprises and for attracting investment through capital markets. 5. Financial policy in regard to the utilisation of the proceeds of disinvestment channelised into the National Investment Fund. 6. The Unit Trust of India Act, 1963 (52 of 1963) along with subjects relating to Specified Undertaking of the Unit Trust of India (SUUTI).”. PRANAB MUKHERJEE PRESIDENT [F. No. 1/21/6/2016-Cab.] DEEPTI UMASHANKAR, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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