New Delhi: DPE (The Department of Public Enterprises) has now been made a part of the Finance ministry in order to speed up privatization and to exercise financial control over state-run enterprises. With a secretary department card out of public enterprises, DPE has been a part of the Ministry of Heavy Industries for a while now.
The Cabinet Secretariat on Tuesday amended the allocation of business rules, moving DPE under the direct control of Finance Minister, Nirmala Sitharaman.
Apart from issues such as heavy engineering and automobiles, the department will also be overseeing the functioning of 36 PSUs. This will provide the finance minister a direct oversight about the policies related to some key manufacturing sectors.
The change was brought at a time when the Centre’s privatization program was moving slower than expected due to the second wave of COVID. Over the last few years with the disinvestment apartment, the Finance Ministry has grown into a mega ministry. Now, apart from the Chief Economic Advisor, the Finance Minister will have six people reporting to her.
In addition to this, the Foreign Investment Promotion Board (FIPB) administration of foreign investments was given to the Finance Ministry. The shift of DPE to the Finance Ministry will help in efficient monitoring of the capital expenditure, asset monetization and financial health of the Central Public Sector Enterprises (CPSEs).
Department of public enterprises will be joining the list of the following departments under the Finance Ministry – Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management and Financial Services.