FinMin will get greater: Department of Public Enterprises now a part of Finance Ministry
3 min read The authorities has merged the Department of Public Enterprises (DPE) with the Finance Ministry to provide it a greater management over state-owned companies and facilitate its formidable privatisation programme.
Finance Ministry will now have six departments whereas DPE’s hereto father or mother ministry, the Ministry of Heavy Industries and Public Enterprises will now be referred to as the Ministry of Heavy Industries.
Previously, the Disinvestment Ministry – created beneath the Atal Bihari Vajpayee authorities – was merged with the Finance Ministry and is now a division beneath it.
Also, Foreign Investment Promotion Board (FIPB) was abolished and administration of overseas investments was given to the Finance Ministry (FinMin).
The shift of DPE to the Finance Ministry will assist in environment friendly monitoring of the capital expenditure, asset monetisation and monetary well being of the Central Public Sector Enterprises (CPSEs).
“Ministry of Finance (Vitta Mantralaya), after the sub-heading (v) Department of Financial Services (Vittiya Sewayen Vibhag), following sub-heading shall be inserted, namely:- (vi) Department of Public Enterprises (Lok Udyam Vibhag)” as per the Cabinet Secretariat notification dated July 6, 2021.
The rejig comes forward of Cabinet growth slated later within the day.
The gazette notification issued stated these guidelines could also be referred to as the Government of India (Allocation of Business) Three Hundred and Sixty First Amendment Rules, 2021.
“They shall come into force at once,” the notification stated.
Presently, the Finance Ministry has 5 departments — Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management and Financial Services.
With the addition, this would be the sixth division beneath the Finance Ministry.
Giving particulars of the capabilities carried out by the DPE, the notification stated coordination of issues of common coverage affecting all Public Sector Enterprises (PSEs), analysis and monitoring the efficiency of PSEs, together with the memorandum of understanding mechanism, overview of capital tasks and expenditure in CPSEs.
Besides, the DPE frames measures aimed toward bettering efficiency of CPSEs and different capability constructing initiatives of PSEs, rendering recommendation referring to revival, restructuring or closure of PSEs together with the mechanisms, counselling, coaching and rehabilitation of staff in CPSEs beneath Voluntary Retirement Scheme and categorisation of CPSEs together with conferring ‘Ratna’ standing, amongst others.
The Heavy Industries Ministry will proceed to be the executive ministry associated primarily to the capital items sector. As many as 44 CPSEs together with Maruti Udyog Limited, BHEL, Cement Corporation, Scooters India, HMT and numerous different subsidiaries could be beneath the Ministry of Heavy Industries.
Many firms beneath the ministry are sick and up on the market beneath the disinvestment programme of the federal government.
Finance Minister Nirmala Sitharaman in her Budget 2021-22 already introduced {that a} revised mechanism for fast-tracking closure of loss making PSUs could be labored out and an incentive package deal could be developed to incentivise states to promote stake in state PSUs.
To monetise lands owned by CPSEs, a particular objective car (SPV) could be developed.
She additionally introduced a big-ticket privatisation agenda, together with privatisation of two public sector banks and one common insurance coverage firm to garner Rs 1.75 lakh crore from stake sale in public sector firms and monetary establishments throughout 2021-22.
As a part of the divestment technique for the monetary sector, the federal government has determined to go for a mega preliminary public providing (IPO) of Life Insurance Corporation of India (LIC) and residual stake sale in IDBI Bank in the course of the monetary 12 months starting April.
Besides, strategic sale of Bharat Petroleum Corporation Ltd (BPCL), Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, Pawan Hans, Air India amongst others, could be accomplished in 2021-22.
In September 2020, the federal government had apprised that out of the 34 PSUs authorised for disinvestment thus far, transactions had been accomplished for eight. Transactions for 4 PSUs had been halted as they’re advisable for closure. Two of them had been held up because of litigation, whereas transactions for 20 PSUs are within the course of.
