Explanation:

- Option 1, DIPP: This refers to the Department of Industrial Policy and Promotion, which deals with promoting and developing industries and internal trade, not disinvestment.

- Option 2, DIT: The Department of Information Technology, now part of the Ministry of Electronics and Information Technology, focuses on IT and digital initiatives.

- Option 3, DIPAM: Department of Investment and Public Asset Management handles the disinvestment of government equity in public sector enterprises.

- Option 4, DCPSE: This option does not correspond to a known government department.

- Option 5, DDWS: The Department of Drinking Water and Sanitation is responsible for clean water and sanitation efforts, not disinvestment.

Answer with Highlighted and Validated Insight:

- Correct Answer is Option 3, DIPAM, as it works with NITI Aayog on reducing government stake in Central Public Sector Enterprises.