The government of India has decided to bring Department of Public Enterprises under finance ministry.
- Department of Public Enterprises was earlier under Ministry of Heavy Industries and Public Enterprises.
- It has been brought under finance minister in a bid to ease coordination regarding future disinvestment plans.
- Finance ministry now comprises of six departments, after inclusion of DPE.
- Other 5 departments are:
- Department of Economic Affairs,
- Department of Expenditure,
- Department of Revenue,
- Department of Investment & Public Asset Management and
- Department of Financial Services.
FM Nirmala Sitharaman had announced about this change in her budget speech 2021-2022.
Why DPE brought under Finance Ministry?
This move aims to ease disinvestment process. Finance ministry already has a department dealing with Central Public Sector Enterprises. So, inclusion of DPE would result into better coordination on issues like disinvestment. Other identified areas include coordination on general policy matters impacting CPSEs, evaluating their performance, and review of capital projects.
The move was need of the hour as government needs to speed up divestments in public sector units in order to raise funds.
What were the concerns earlier?
Earlier, issues like disinvestment used to face delay because finance ministry and DIPAM had to coordinate with Department of Public Enterprises.
Newly created Ministry of Cooperation or Sahkarita Mantralaya was also be carved out from Department of Agriculture, Cooperation & Farmers Welfare. It existed under agriculture ministry.
Department of Public Enterprises
In the year 1965, Bureau of Public Enterprises was constituted, following the recommendation of 52nd Report of Estimates Committee of 3rd Lok Sabha (1962-67), under Ministry of Finance. In 1985, BPE was made part of Ministry of Industry. In the year 1990, BPE was made a full-fledged Department called a Department of Public Enterprises. DPE is the nodal department for all Central Public Sector Enterprises and formulates policy related to CPSEs.
Dept of Public Enterprises now runs under Finance Ministry Dept of Public Enterprises now runs under Finance Ministry