The Union government’s ability to maximise returns from its vast public-asset portfolio could be hampered by the capacity crisis DIPAM is facing, the country’s lawmakers have warned. Disinvestment proceeds had touched a high of ₹35,294 crore in 2022–23, but the figure fell to ₹16,886 crore in 2025–26. 

The Department-related Parliamentary Standing Committee on Finance has revealed that DIPAM currently has only 51 officers against a sanctioned strength of 89, leaving 38 posts vacant, which means a vacancy rate of about 43%.

DIPAM manages the government’s equity in Central Public Sector Enterprises (CPSEs), oversees strategic disinvestment, supports value maximisation of public assets, and coordinates transactions involving multiple government agencies.

“The manpower crisis raises broader questions about the government’s disinvestment strategy. DIPAM is expected not merely to facilitate asset sales but to maximise the value of government holdings and efficiently recycle public assets, including prime government real estate. A shortage of specialised personnel could consequently affect both the pace and quality of transactions, potentially delaying receipts and limiting value realisation,” a senior government functionary said.

Shortage At Supervisory Levels

The panel in its report said the shortage is particularly pronounced at senior supervisory levels, with 11 vacancies at the Director level and 8 at the Under Secretary level. For an institution entrusted with major financial, legal, and asset-management responsibilities, the committee noted that the scale of vacancies is far more than a routine administrative issue.

The manpower crisis raises broader questions about the government’s disinvestment strategy

- A senior government functionary

As DIPAM’s portfolio of public assets exceeds ₹42.76 lakh crore, the Committee has argued that inadequate staffing could materially impair decision-making, transaction management, and inter-departmental coordination.

A senior government official said, “The proposed disinvestment of IDBI Bank and the finalisation of CPSE memoranda of understanding are among the transactions that require substantial financial, legal, and administrative expertise. Such assignments involve valuation, due diligence, regulatory coordination, legal structuring, and negotiations, and such functions mostly depend heavily on experienced personnel.”

No Progress On Filling Vacancies

Despite the panel’s recommendations even on earlier occasions, the official said “no tangible progress” has been made in filling the vacancies, the official said.

The Finance Ministry, in response to the Parliamentary panel, said DIPAM had been pursuing the matter with the departments concerned as a priority. Vacancies involving Assistant Section Officers, Section Officers, Under Secretaries, and Assistant Directors have reportedly been taken up with the Department of Personnel and Training, Department of Expenditure and Department of Economic Affairs.

The committee, however, found this approach inadequate and contended that routine correspondence between departments is insufficient when a department responsible for managing assets worth more than ₹42.76 lakh crore, as it is operating with nearly half of its sanctioned workforce. 

The panel’s observation that even routine administrative work is being affected underscores the extent to which the manpower shortage has become an institutional capacity issue, and would weaken the government’s ability to execute complex disinvestment transactions, another official said.

The Parliamentary panel has recommended the creation of a dedicated task force to ensure the early filling of all 38 vacant positions. The recommendation reflects the committee’s view that the problem requires focused intervention, clear accountability, and time-bound action rather than continued administrative follow-up.

Disinvestment Strategy

For FY2026–27, the Union Budget has provided for ₹80,000 crore under Miscellaneous Capital Receipts. 

Since the government has stopped setting a separate annual disinvestment target, the ₹80,000 crore is a combined budgetary target for disinvestment and other asset-monetisation receipts. So far, ₹59,083 crore has been raised; therefore, roughly ₹20,917 crore of the target still remains to be achieved.

The Parliamentary committee has also drawn attention to DIPAM’s relatively modest budget allocation of ₹55.92 crore. 

Strengthening DIPAM is not simply a question of filling vacancies; it involves ensuring that the institution has sufficient financial, technical, and administrative resources to discharge its mandate effectively, it said.

For DIPAM, filling vacant posts - especially at senior and specialised levels - will be critical to maintaining transaction capability, strengthening legal and financial oversight, and ensuring that public assets are managed with greater efficiency.