Finance

Govt brings division of public enterprises underneath finance ministry

NEW DELHI: Coinciding with the Cupboard reshuffle, the division of public enterprises (DPE) has now been made a part of the finance ministry in what’s seen as a transfer to hurry up the privatisation course of and train larger monetary management over state-run enterprises.
For years, DPE was a part of the ministry of heavy industries, with a separate division carved out for public enterprises. Through the Atal Bihari Vajpayee and Narendra Modi regimes, the 2 departments had a standard minister, often a BJP ally.
On Tuesday, the Cupboard Secretariat amended the allocation of enterprise guidelines and moved DPE underneath the direct management of finance minister Nirmala Sitharaman, who additionally has the division of investments and public asset administration (Dipam) underneath her cost. The truth is, just a few years in the past, a part of the enterprise with DPE was additionally transferred to Dipam because the Modi administration sought to make use of revolutionary monetary devices to mop up extra sources from public sector firms.

The division will oversee the functioning of 36 PSUs, other than points corresponding to heavy engineering and vehicles, offering the finance minister direct oversight over insurance policies associated to some key manufacturing sectors.
The change comes at a time when the Centre’s privatisation programme is shifting slower than anticipated, partly as a result of second wave of Covid. Moreover, a tighter leash over public sector enterprises will allow the finance ministry to extract extra funds simply when it’s brief on sources. Moreover, it might push by spending and different selections at a time when boosting capital expenditure has been a key focus space.
The finance ministry has grown right into a mega ministry over the previous couple of years with Dipam (the disinvestment division, in its earlier avatar), whereas the division of economic companies grew from being a division within the ministry to an impartial division. Moreover, in 2014, Modi had added company affairs ministry to the FM’s portfolio, which initially comprised the departments of income, expenditure and financial affairs. Now, the FM could have six secretaries reporting to her, other than the chief financial adviser.
On Tuesday, the Cupboard Secretariat had additionally introduced the institution of the ministry of cooperation.

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