Dept of Public Enterprises now under Finance Ministry

Context:

The government has reallocated the Department of Public Enterprises (DPE) to the Finance Ministry from the Ministry of Heavy Industries in a bid facilitate its ambitious disinvestment programme.

Relevance:

GS-II: Polity and Governance (Government Policies & Interventions)

Dimensions of the Article:

1. The Buildup to this shifting of DPE
2. About the Department of Public Enterprises (DPE)

The Buildup to this shifting of DPE

• In their report, the Estimates Committee of 3rd Lok Sabha (1962-67) stressed the need for setting up a centralized coordinating unit, which could also make continuous appraisal of the performance of public enterprises.
• This led to the setting up of the Bureau of Public Enterprises (BPE) in 1965 in the Ministry of Finance.
• In 1985, BPE was made part of the Ministry of Industry and in 1990, BPE was made a full-fledged Department known as the Department of Public Enterprises (DPE).
• The 2021 move shifting the DPE to the Ministry of Finance will help in efficient monitoring of the capital expenditure, asset monetisation and financial health of the CPSEs.
• The DPE will now be the sixth department in the finance ministry besides economic affairs, revenue, expenditure, financial services and Department of Investment and Public Asset Management (DIPAM).

About the Department of Public Enterprises (DPE)

• The Department of Public Enterprises (DPE) is the nodal department for all the Central Public Sector Enterprises (CPSEs) [companies in which the direct holding of the Central Government or other CPSEs is 51% or more] and formulates policy pertaining to CPSEs.
• The DPE lays policy guidelines on performance improvement and evaluation, autonomy and financial delegation and personnel management in CPSEs.
• The DPE also collects and maintains information in the form of a Public Enterprises Survey on several areas in respect of CPSEs.
• Other Major Functions of DPE are:
  • Coordination of matters of general policy affecting all Public Sector Enterprises (PSEs).
  • Restructuring or closure of PSEs including the mechanisms.
  • Rendering advice relating to revival.
  • Counselling, training and rehabilitation of employees in CPSEs under Voluntary Retirement Scheme.
  • Categorisation of CPSEs including conferring ‘Ratna’ status, among others.

-Source: The Hindu