Department of Public Enterprises

Department of Public Enterprises

Subject: Polity

Context:

The government has merged the Department of Public Enterprises (DPE) with the finance ministry to give it a better control over state-owned firms and facilitate its ambitious privatization programme.

Concept:
Finance ministry will now have six departments

• Department of Economic Affairs
• Department of Expenditure
• Department of Revenue
• Department of Financial Services
• Department of Investment and Public Asset Management
• Department of Public Enterprises (LokUdyamVibhag) (Earliar in Min of Heavy Industries)

Functions performed by the DPE,

• coordination of matters of general policy affecting all Public Sector Enterprises (PSEs)
• evaluation and monitoring the performance of PSEs,
• memorandum of understanding mechanism,
• Review of capital projects and expenditure in CPSEs.
• improving performance of CPSEs and other capacity building initiatives of PSEs,
• rendering advice relating to revival,
• restructuring or closure of PSEs including the mechanisms, counselling,
• training and rehabilitation of employees in CPSEs under Voluntary Retirement Scheme and categorisation of CPSEs including conferring ‘Ratna’ status

The shift of DPE to the finance ministry will help in efficient monitoring of the capital expenditure, asset monetisation and financial health of the Central Public Sector Enterprises (CPSEs).

The heavy industries ministry will continue to be the administrative ministry related primarily to the capital goods sector like 44 CPSEs including MarutiUdyog Limited, BHEL, Cement Corporation, Scooters India, HMT and various other subsidiaries would be under the Ministry of Heavy Industries.