The Government of India recently undertook a significant restructuring. In a noteworthy move, the Department of Public Enterprises (DPE) was transferred to the Finance Ministry from its previous jurisdiction, the Ministry of Heavy Industries. Following this reallocation, the Finance Ministry will now encompass six departments, and the erstwhile parent organization of the DPE, the Ministry of Heavy Industries and Public Enterprises, will go by the new name – the Ministry of Heavy Industries.
About DPE
The DPE serves as the primary department for all Central Public Sector Enterprises (CPSEs), framing policies related to them. Stretching our definition of CPSEs, we can ascertain them as those companies where the Central Government or other CPSEs hold a direct stake of 51% or more.
The DPE’s role focuses on developing policy guidelines, specifically touching upon performance improvement, evaluation, autonomy, financial delegation, and personnel management within these CPSEs. Additionally, it collects and maintains information via a Public Enterprises Survey examining several aspects associated with CPSEs.
DPE Under The Finance Ministry
With its induction into the Finance Ministry, DPE becomes its sixth department, adding to the existing ones: Economic Affairs, Revenue, Expenditure, Financial Services, and Department of Investment and Public Asset Management (DIPAM). This shift should effectively enhance monitoring of capital expenditure, asset monetization, and financial health of the CPSEs.
The History Behind DPE
The idea to establish a centralized coordinating unit tracing back to the report by the Estimates Committee of the third Lok Sabha (1962-67) materialized in the formation of the Bureau of Public Enterprises (BPE) under the Finance Ministry in 1965. BPE became a part of the Ministry of Industry in 1985 and finally, in May 1990, transformed into the full-fledged Department of Public Enterprises.
The Role Of DPE
DPE shoulders a variety of responsibilities. It coordinates matters of general policy that impact all Public Sector Enterprises (PSEs). It is involved in restructuring or closing PSEs and provides advice related to their revival. Additionally, it deals with counselling, training and rehabilitating employees in CPSEs under the Voluntary Retirement Scheme. DPE also categorizes CPSEs, conferring statuses such as ‘Ratna’. At present, there are 10 Maharatna, 14 Navratna, and 74 Miniratna CPSEs.
About The Estimates Committee
The Estimates Committee traces its origins to the British Era in the 1920s, but its first establishment in Independent India was in 1950. This committee’s primary role is to examine budget estimates and suggest economies in public expenditure. It is one among other Financial Committees of Parliament, like the Public Accounts Committee and Committee on Public Undertakings.
Membership and Functioning of The Estimates Committee
This committee comprises 30 members, all elected from the Lok Sabha every year following proportional representation principles. All parties receive due representation in this process. A minister cannot be elected as a member or chairman of the committee. The Speaker appoints the chairman, always chosen from the ruling party or coalition.
In its function, the committee examines economy and efficiency in expenditures, suggesting changes in policy or administrative framework. It also considers alternative policies to bring about economy and efficiency. The committee’s work spans throughout the year, reporting to the house continually. Hence, it has earned the moniker ‘continuous economy committee’.