Economy

Finance Ministry gets a new addition in the form of ‘Department of Public Enterprises’

Shishir Sinha New Delhi | Updated on July 07, 2021

As on date, it is part of Ministry of Heavy Industries and Public Enterprises

Ahead of the Cabinet expansion, the Finance Ministry has been expanded with the addition of a new department – the Department of Public Enterprises (DPE). As on date, it is part of the Ministry of Heavy Industries and Public Enterprises.

The Cabinet Secretariat has notified an amendment in the Government of India (Allocation of Business) Rules, 1961. The amendment will come into force at once.

As on date, the Finance Ministry has five departments: Economic Affairs, Revenue, Expenditure, Investment & Public Asset Management and Financial Services. It is believed that since one department of the Finance Ministry is dealing with Central Public Sector Enterprises (CPSE), bringing DPE under the Ministry would make co-ordination easier.

The notification reiterated 12 areas for DPE. These include coordination of matters of general policy affecting all Public Sector Enterprises (PSEs), evaluation and monitoring the performance of PSEs, including the Memorandum of Understanding mechanism, review of capital projects and expenditure in Central Public Sector Enterprises (CPSEs), measures aimed at improving performance of CPSEs and other capacity building initiatives of PSEs, rendering advice relating to revival, restructuring or closure of PSEs including the mechanisms therefore and categorisation of CPSEs including conferring ‘Ratna’ status beside others.

The Heavy Industries Ministry will continue to be the nodal one for automobile and capital goods sector. It will have 44 areas for administrative work which include CPSEs such as BHEL, Cement Corporation, Scooters India and others.

Ministry of Cooperation

Another notification carved out Cooperation from the Department of Agriculture, Cooperation and Farmers Welfare under the Agriculture Ministry to set up a new ‘Ministry of Cooperation (Sahkarita Mantralaya)’.

Nine work areas have been allocated to this new Ministry. These include general policy in the field of co-operation and co-ordination of co-operation activities in all sectors, realisation of vision “from cooperation to prosperity”, strengthening of cooperative movement in the country and deepening its reach up to the grassroots, promotion of cooperative-based economic development model, including the spirit of responsibility among its members to develop the country, creation of appropriate policy, legal and institutional framework to help cooperatives realise their potential, and National Co-operative Development Corporation, beside others.

Published on July 07, 2021

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