Govt's move to bring DPE under FinMin to aid privatisation process

The changes are being done as govt looks to maintain "bare minimum" presence in PSUs in strategic sectors and privatise, merge, or close the remaining state-owned entities

The Narendra Modi government has brought the Department of Public Enterprises (DPE) under the Ministry of Finance, a move that is expected to improve the control over public sector undertakings (PSU), and help in quicker implementation of privatisation proposals.

Before the induction of new members in the Council of Ministers, the Cabinet Secretariat notified changes in the Government of India (Allocation of Business) Rules, 1961 effectively bringing DPE under the finance ministry from the Ministry of Heavy Industries and Public Enterprises.

The DPE monitors and evaluates performance of PSUs including the Memorandum of Understanding mechanism that sets targets for dividend