ROLE AND FUNCTIONS 

The Ministry of Heavy Industries and Public Enterprises is responsible for the development and growth of capital goods and engineering industry in the country besides framing policy guidelines for Central Public Sector enterprises (PSEs) and administratively dealing with 48 Central PSEs. The Ministry comprises of the 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, industrial machinery and auto-industry. The industries covered by this Department provide goods and services for almost all sectors of the economy, including power, rail and road transport. They also cater 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. It is, besides, vested with the administrative charge of 48 Public Sector enterprises.

The Deptt. holds interactions with various Industry Councils and evolves plans for their growth. The Deptt. also assists industry through policy initiatives, resolution of problems relating to tariffs and trade, technological collaboration and upgradation, and Research & Development, etc.

48 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 Public Sector Enterprises under the Department was about Rs.7780.24 crore till March, 2000, and the employment about 1.61 lakh persons. (Ann – 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/hydroturbines, 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 other agencies of the Government and helps establish long term linkages with customer to improve order book and ensure timely supplies to core sector customers.

The Department encourages restructuring of the public sector enterprises where necessary to improve their efficacy. The Deptt. 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 advise 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 unforseen revamping projects or implement schemes 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 team of officers and staff of overall strength of 214 including an Economic Adviser and an Integrated Finance Wing.

Public Sector Undertakings 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 information to the general public.
2. A Joint Secretary specifically attends to redressal of public grievances in time. During the period Jan. 2000 to 31^st Oct., 2000, 10 representations were received from the employees (including ex-employees) of PSEs under DHI through Deptt. of Administrative Reforms & Public Grievances and 3 representations have been settled within the stipulated time limit.
3. In an effort to computerise of all matters in this Department, a Joint Secretary in this Department has been designated as IT manager who will also be responsible for up-dating the web-sites of the Department periodically.
4. A Nodal Officer of the rank of Director has been designated in the Department for the redressal of grievances of Pensioners.
5. For the purpose of settlement of disputes in Lok Adalat, a Nodal Officer of the rank of Director has been designated in the Department in respect of officers/staff members working in the Department.

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 lay 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 it 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.

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 Board, providing operational and financial autonomy, making PSEs accountable, infusing transparency in management, achieving managerial excellence and increasing productivity.