The government has merged the Department of Public Enterprises (DPE) with the Union Finance Ministry to give it a better control over State-owned companies and facilitate its ambitious privatisation programme.

The Finance Ministry will now have six departments, while DPE’s earlier parent ministry, the Ministry of Heavy Industries and Public Enterprises, will now be called the Ministry of Heavy Industries.

Prior to the addition of the DPE, the Finance Ministry had five departments – Economic Affairs, Revenue, Expenditure, Investment and Public Asset Management and Financial Services.

Previously, the Disinvestment Ministry – created under the Atal Bihari Vajpayee government – was merged with the Finance Ministry and is now a department under it. Also, Foreign Investment Promotion Board (FIPB) was abolished and 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 monetisation and financial health of the Central public sector enterprises (CPSEs).

Giving details of the functions performed by the DPE, the government’s notification listed coordination of matters of general policy affecting all PSEs, evaluation and monitoring of the performance of PSEs, including the memorandum of understanding mechanism, review of capital projects and expenditure in CPSEs.

Besides, the DPE frames 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, counselling, training and rehabilitation of employees in CPSEs under the Voluntary Retirement Scheme and categorisation of CPSEs, including conferring the ‘Ratna’ status, among others.