How, Why,what are the benefits of "Centre merges Dept of Enterprises with finance ministry"?

How, Why,what are the benefits of "Centre merges Dept of Enterprises with finance ministry"?

The finance ministry was expanded on July 7, 2021 with the addition of a new department – the Department of Public Enterprises (DPE), which so far as part of the Ministry of Heavy Industries and Public Enterprises. With this, the finance ministry now has six departments.

The finance ministry already has five departments – Department of Economic Affairs, Department of Expenditure, Department of Revenue, Department of Investment and Public Asset Management (DIPAM) and Department of Financial Services.

Benefits of these measures: The reorganisation is expected to make coordination between DPE and DIPAM much easier.

DPE will be responsible for annual survey of public enterprises residual work relating to erstwhile Bureau of Public Enterprises including industrial management pool; coordination, evaluation and monitoring the performance of PSEs including the memorandum of understanding mechanism.

Matters relating to permanent machinery of arbitration (PMA) for the PSEs; counselling, training and rehabilitation of employees in CPSEs under Voluntary Retirement Scheme; review of capital projects and expenditure in CPSEs.

Measures aimed at improving the performance of CPSEs and other capacity-building initiatives of PSEs; rendering advice relating to revival, restructuring or closure of PSEs.

It will also deal with matters relating to Standing Conference of Public Enterprises; matters relating to International Center for Public Enterprises and categorisation of CPSEs including conferring “Ratna” status