Ministry of Heavy Industries and Public Enterprises

Ministry of Heavy Industries and Public Enterprises

The Ministry of Heavy Industries and Public Enterprises, a branch of Government of India, administers 48 Central Public Sector Enterprises (PSEs) and assists them in their effort to improve capacity utilisation & increase profitability, Generate resources and Re-orient strategies to become more competitive. The department serves as an interface between PSEs and other agencies for long term policy formulation. The department also encourages restructuring of PSEs to make their operations competitive and viable on a long term and sustainable basis.

As of Jul 2016 ,Honorable Minister: Anant Geete,[1] Honorable Minister of State: Babul Supriyo.

Public sector enterprises

As of 2012 the ministry was responsible for the following public sector enterprises:[2]

Andrew Yule and Company Ltd.
Bharat Bhari Udyog Nigam (BBUNL)
Bharat Heavy Electricals Limited (BHEL)
Bharat Heavy Plate and Vessels (acquired by Bharat Heavy Electricals Limited)
Bharat Pumps & Compressors
Bridge and Roof Company (India)
Cement Corporation of India (CCI)
Engineering Projects (India)
Heavy Engineering Corporation (HEC)
Hindustan Cables
Hindustan Newsprint Ltd. (HNL)
Hindustan Paper Corporation
Hindustan Photo Films Mfg. Co. (HPF)
Hindustan Salts Ltd. (HSL)
HMT (India)
HMT Machine Tools
Instrumentation Limited, Kota (ILK)
Nagaland Pulp & Paper Co. (NPPC)
NEPA (India)
Richardson & Cruddas (R&C)
Scooters India Ltd. (SIL)
Triveni Structurals (TSL)
Tungbhadra Steel Products Ltd. (TSPL)
Tyre Corporation of India Ltd. (TCIL)

Department of Public Enterprises

The Department of Public Enterprises acts as a nodal agency for all Public Sector Enterprises and assists in policy formulation pertaining to the role of PSEs in the economy as also in laying 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.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.

Role of DPE in issuing guidelines / directives to CPSEs

The role of DPE in issuing guidelines / directives is clearly defined in Report no.-2 of 2013 of the Comptroller and Auditor General of India on Compliance Audit of General Purpose Financial Reports of Central Public Sector Enterprises.

The directions / instructions are given to CPSEs through Presidential Directives as well as Guidelines issued by Administrative Ministries or DPE. Presidential Directives are issued by the Administrative Ministries to the concerned CPSEs whenever the situation so warrant and are mandatory in nature. For the purpose of maintaining uniformity, such Directives are to be issued in consultation with the DPE if these relate to single CPSE and with the concurrence of the DPE if these are applicable to more than one CPSE.

Guidelines could be issued either by the Administrative Ministries or the DPE as the case may be and are advisory in nature. The Board of Directors of the CPSEs will have the discretion not to adopt these guidelines for reasons to be recorded in writing. The Board Resolution on the subject giving the reasons therein is to be forwarded both to the Administrative Ministry concerned as well as to the DPE.

In the above-mentioned report no-2 of 2013 it is also mentioned that though the DPE guidelines are advisory, for good corporate governance, there should be an appropriate mechanism to enforce accountability of the Administrative Ministries and CPSEs to the compliance to DPE guidelines. An Audit review of the institutional arrangement DPE has in place to ensure compliance to its guidelines revealed that:

DPE guidelines on Personal Policies

Different categories of guidelines on Personal Policies are (a) Creation Of Posts And Categorisation (b) Composition Of Board Of Directors (c) Service Matters (d) Immediate Absorption-Deputation (e) Annual Performance Appraisal (f) Conduct, Discipline & Appeal Rules (g) Vigilance Polices (h) Reservation Polices (i) Report Of The Committee To Review The Format Of Annual Performance Report (APR) And Procedure For Writing APR

Salient feature DPE Guidelines on Annual Performance Appraisal

Format-Weightage of Personal Attributes (Competencies, Values and Potentials) are to be rationalised to 25% for all executives including chief executive.Balance 75% for MOU/Targets. This is as per Report Of The Committee To Review The Format Of Annual Performance Report (APR) And Procedure For Writing APR

Timely completion-Performance Appraisal Process has to be completed before distribution of Performance Related Pay(PRP) as per DPE OM no 2(68) /11-DPE(WC) dated 31.12.2012.

Appeal-representations can be made against the adverse entries in Performance Appraisal Report.Any deviation of Performance Appraisal score can be appealed. Reference: DPE OM No. 5(1)/2000-GM Dated the 28.05.2009 and Supreme Court of India,Dev Dutt vs Union Of India & Ors on 12.05. 2008

Last date of appeal-Last date of appeal has to be mentioned in the Final PMS score card while communicating the score by reporting officer.

Time limit of Appeal- 6 weeks to Appeal and 6 weeks for readdressal.

Disposal of representation against APAR score in a Quasi-judicial Manner

As per DOPT (Department of Personnel & Training) OM No. 21011/1/2005-Estt.(A)(Part.III) dated 31.01.2014

The representations against the remarks or for up gradation of final grading in the APAR (Annual Performance Appraisal Reports) be considered by the competent authority objectively in a quasi-judicial manner on the basis of material placed before it. It provides that the competent authority shall take into account the contentions of the officer who has represented against the particular remarks/ grading in the APAR and also take the views from the reporting and reviewing officer.


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