Department of Public Enterprises has been merged with Finance Ministry
ECONOMY & POLICY

Department of Public Enterprises has been merged with Finance Ministry

The Department of Public Enterprises (DPE) and the Ministry of Finance have merged to give the government better control over state-owned businesses and to help it with the privatisation programme.

DPE's parent ministry, the Ministry of Heavy Industries and Public Enterprises, will now be referred to as the Ministry of Heavy Industries, and the Finance Ministry will now have six departments.

Previously, the Atal Bihari Vajpayee government's disinvestment ministry was merged with the Finance Ministry and is now a department within it.

The Foreign Investment Promotion Board (FIPB) was abolished, and foreign investment administration was transferred to the Finance Ministry (FinMin).

The transfer of DPE to the Finance Ministry will aid in the effective monitoring of capital expenditure, asset monetisation, and the financial health of Central Public Sector Enterprises (CPSEs).

The reshuffle comes ahead of a Cabinet expansion later that day.

These rules will be known as the Government of India (Allocation of Business) Three Hundred and Sixty-First Amendment Rules, 2021, according to the gazette notification.

Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management, and Financial Services are the five departments that make up the finance ministry.

With the addition, the finance ministry will have a total of six departments.

According to the notification, the DPE's responsibilities include coordinating general policy matters affecting all PSEs, evaluating and monitoring PSE performance, including the memorandum of understanding mechanism, and reviewing capital projects and expenditure in CPSEs.

In addition, the DPE outlines measures aimed at improving CPSE performance and other PSE capacity-building initiatives, as well as providing advice on PSE revival, restructuring, or closure, including the mechanisms, counselling, training, and rehabilitation of employees in CPSEs under the Voluntary Retirement Scheme, and categorising CPSEs, including conferring 'Ratna' status, among other things.

The ministry of heavy industries will remain the administrative ministry in charge of the capital goods sector. The Ministry of Heavy Industries will oversee 44 CPSEs, including Maruti Udyog Limited, BHEL, Cement Corporation, Scooters India, HMT, and other subsidiaries.

Image Source


Also read: Ministry of Finance announces key schemes to boost economy

Also read: India to become global economic powerhouse: Nirmala Sitharaman

The Department of Public Enterprises (DPE) and the Ministry of Finance have merged to give the government better control over state-owned businesses and to help it with the privatisation programme. DPE's parent ministry, the Ministry of Heavy Industries and Public Enterprises, will now be referred to as the Ministry of Heavy Industries, and the Finance Ministry will now have six departments. Previously, the Atal Bihari Vajpayee government's disinvestment ministry was merged with the Finance Ministry and is now a department within it. The Foreign Investment Promotion Board (FIPB) was abolished, and foreign investment administration was transferred to the Finance Ministry (FinMin). The transfer of DPE to the Finance Ministry will aid in the effective monitoring of capital expenditure, asset monetisation, and the financial health of Central Public Sector Enterprises (CPSEs). The reshuffle comes ahead of a Cabinet expansion later that day. These rules will be known as the Government of India (Allocation of Business) Three Hundred and Sixty-First Amendment Rules, 2021, according to the gazette notification. Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management, and Financial Services are the five departments that make up the finance ministry. With the addition, the finance ministry will have a total of six departments. According to the notification, the DPE's responsibilities include coordinating general policy matters affecting all PSEs, evaluating and monitoring PSE performance, including the memorandum of understanding mechanism, and reviewing capital projects and expenditure in CPSEs. In addition, the DPE outlines measures aimed at improving CPSE performance and other PSE capacity-building initiatives, as well as providing advice on PSE revival, restructuring, or closure, including the mechanisms, counselling, training, and rehabilitation of employees in CPSEs under the Voluntary Retirement Scheme, and categorising CPSEs, including conferring 'Ratna' status, among other things. The ministry of heavy industries will remain the administrative ministry in charge of the capital goods sector. The Ministry of Heavy Industries will oversee 44 CPSEs, including Maruti Udyog Limited, BHEL, Cement Corporation, Scooters India, HMT, and other subsidiaries. Image Source Also read: Ministry of Finance announces key schemes to boost economy Also read: India to become global economic powerhouse: Nirmala Sitharaman

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