The Ministry of Heavy Industries and Public Enterprises created during the year is responsible for the development and growth of capital goods and engineering industries in the country besides framing policy guidelines for Central Public Sector Enterprises (PSEs) and administratively dealing with 48 operating PSEs. The Ministry comprises of Department of Heavy Industry and the Department of Public Enterprises.

The Department of Heavy Industry is concerned with the development of the heavy engineering industry, machine tool industry, heavy electrical industry and auto-industry. It is, besides, vested with the administrative charge of 48 Public Sector Enterprises. The industries covered by this Department provide goods and services for almost all sectors of the economy, including power, rail and road transport. The Ministry also looks after the Machine Building Industry and caters to the requirements of equipment for basic industries such as steel, non-ferrous metals, fertilizers, refineries, petrochemicals, shipping, textiles, paper, cement, sugar etc. The Department is responsible for development of a wide range of intermediate engineering products like castings, forgings, diesel engines, industrial gears and gear boxes.

The Department holds interactions with Industry Councils and evolve plans for growth of the various segments of Industry. It assists industry through input support, resolution of problems relating to imposts and imports, technological collaboration and upgradation, Research & Development, etc.

48 operating PSEs under the administrative control of the Department are engaged in manufacturing of engineering/capital goods, consultancy and contracting activities. The total investment (Gross Block) in 48 Enterprises was about Rs.7595 crore till March, 1999, and they employed about 1.77 lakh persons. (Annexure – I & II). The Department is also concerned with the affairs of Maruti Udyog Ltd. These enterprises produce a wide range of products ranging from machine tools, Industrial Machinery, boilers, gas/steam/hydro-turbines, turbo generators, railway traction equipments, pressure vessels, AC locomotives, prime movers, electrical equipment and agricultural tractors to consumer products such as scooters, leather goods and watches.

There is close interaction with PSEs to monitor their performance. The Department also serves as an interface between these enterprises and agencies of the Government. It thus helps establish long term linkages with customers. It intervenes to formulate corporate policies, improve the order book position and ensure timely supplies to core sector customers.

The Department encourages restructuring of the public sector enterprises where necessary to improve their efficacy. The Department pursues the possibility of promoting Joint Ventures (JVs) in appropriate cases with suitable partners to improve their technological and market orientation. Consultants are appointed to advice on corporate restructuring and removal of constraints. The Department arranges Plan and Non-plan budgetary support for the PSEs in consultation with Ministry of Finance and Planning Commission. A separate head of "Crucial Balancing Investment" has been created in the Department’s budget to take on unforeseen revamping projects or implement arrangements urgently during the year in response to market demands. This Department interacts with BIFR and other concerned agencies for formulation of revival packages in respect of sick PSEs.

The Department of Heavy Industry is headed by a Secretary to the Government of India. He is assisted by a 216 strong team of officers and staff including an Economic Adviser and an Integrated Finance Wing.

CITIZENS CHARTER

Public Sector Enterprises function under the Companies Act, and the guidelines laid down by the Department of Public Enterprises.

The Department is committed to the goal of effective and responsive administration towards which the following steps have been taken :

1. Computerised Information and Facilitation Counter has been set up for providing necessary information to the general public.
2. A Joint Secretary specifically attends to redressal of public grievances in time.

The Department acts as a nodal agency for all PSEs and assists in policy formulation pertaining to the role of PSEs in the economy. It lays down policy guidelines on performance improvement and evaluation, financial accounting, personnel management and in related areas. It also collects, evaluates and maintains information on several areas in respect of PSEs. In fulfilling its role, it associates itself with other Ministries and organisations.

The important role and tasks of the Department are listed below :

1. General policy relating to Public Sector.
2. Matters relating to issue of Presidential Directives and guidelines to Public Sector Enterprises.
3. Formulation of policy guidelines pertaining to Public Sector Enterprises in areas like performance improvement and evaluation, financial management, personnel management, Board structures, wage settlement, training, industrial relation, vigilance, performance appraisal, etc.
4. Matters relating to reservation of posts in the public sector enterprises for certain classes of citizens.
5. All matters relating to Memorandum of Understanding between the Public Sector Enterprises and the administrative Ministries/Departments.
6. Matters relating to delegation of powers to Board of Directors.
7. To undertake in-depth studies in respect of significant areas of functioning of Central PSEs.
8. Matters relating to International Centre for Promotion of Enterprises (ICPE).
9. Matters relating to Standing Conference of Public Enterprises (SCOPE).
10. To monitor and evaluate the performance of PSEs and to act as a repository of data and to bring out an Annual Survey for the Parliament.
11. Permanent Machinery of Arbitrators for settlement of disputes among public sector enterprises and Government Departments except disputes relating to tax matters.

The Department is headed by a Secretary who is assisted by an establishment with an overall sanctioned strength of 136 personnel.

The Department has five constituent Divisions : The Financial Policy Division, the Management Policy Division, the MOU Division, the Administration & Coordination Division and Permanent Machinery of Arbitration. The Financial Policy Division comprises the Public Enterprises Survey Unit, the policy planning unit, and the wage policy unit. The Management Policy Division comprises the personnel policy unit, training unit, performance indicator and work norms unit (PIWN Unit) and SC & ST Cell. The MOU Division comprises MOU Unit, Data Bank and Computer Cell. The Administration & Coordination Division comprises the Administration, Library, Parliament and Coordination Wings and Hindi Cell. The Permanent Machinery of Arbitration (PMA) provides a forum for settlement of commercial disputes between two or more PSEs as well as between a Government Department and PSEs.

CITIZENS CHARTER

The Department of Public Enterprises acts as a nodal agency for all PSEs in terms of policy formulation relating to PSEs, issuing guidelines, finalisation of performance MOUs with Govt. and its evaluation.

The Department strives for professionalisation of PSEs Boards, providing operational and financial autonomy, making PSEs accountable, infusing transparency in management, achieving managerial excellence and increasing productivity.