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 49 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 Public Sector Enterprises under the administrative control of this department provide goods and services for almost all sector of the economy, including power, rail and road transport. They also cater to the requirement of equipment for basic industries such as steel, non-ferrous metal, fertilizers, refineries petrochemicals, shipping, paper, cement, sugar etc. The department is responsible for development of a wide ranges of intermediate engineering products like castings, forgings, diesel engines, industrial gears and gear boxes.

The Department holds interactions with various industry Associations and evolves plans for their growth. The Department also assists industry through policy initiatives, resolution of problems relating to tariffs and trade, technological collaboration and upgradation, and research & development, etc.49 PSEs of the Department are engaged in manufacture of engineering/ capital goods, consultancy and contracting activities. The total investment (Gross Block) in 49 Public Sector enterprises under the Department was about Rs. 8052 crore till March, 2001, and the employment about 1.46 lakh persons.(Annexure-1 & II) .The Department is also concerned with the affairs of Maruti Udyog Ltd., a joint sector company in the auto sector, 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 agriculture tractors, consumer products such as scooters 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 customers to improve their order book and ensure timely supplies to core sector customers.

The Department undertakes and encourages restructuring of Public Sector Enterprises under its administrative control in the line with the overall Public Sector Policy of the Government viz. (i) restructuring and revival of potentially viable PSEs; ( ii)close down PSEs which cannot be revived; (iii) bring down Government equity in all non-strategic PSEs; and protect the interest of the workers. Joint venture formation is explored to enable PSEs to access technology, marketing and finance with a view to improve their long term viability.

The Department arranges financial support to the PSEs in consultation with the Ministry of Finance and Planning Commission for meeting their investment needs and providing funds to the sick/loss making PSEs for implementation of restructuring plans sanctioned by the Government /BIFR. The Department also provides financial support to the PSEs to extend benefits to the employees under the Voluntary Retirement Scheme approved by the Government for undertaking manpower rationalisation.

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 208 including an Economic Adviser and an Integrated Finance Wing.

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

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

1. Computerised information and facilitation Counter has been set up for providing information to the general public.
2. In an effort to stream line the system of redressal of public grievances and staff grievances, a joint Secretary and a Deputy Secretary, in this Department are functioning as joint Secretary (Public Grievances) and Deputy Secretary (Staff Grievances) to ensure that the grievance are redressed in time. During the period from November, 2000 to December 31,2001, 18 representations were received from the employees (including ex-employees) of PSEs under DHI through Department of Administration Reforms & Public Grievances and 7 representations were settled within the stipulated time limit.
3. In an effort to computerize all matters in this Department, a joint Secretary in this Department has been designated as IT manager who is also responsible for up –dating the web –sites of the Department periodically.
4. A Nodal Officer of the rank of Deputy Secretary 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 Deputy Secretary has been designated in the Department in respect of officers/staff members working in the Department.

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 post in the public sector enterprises for certain classes of citizen.
5. All matters relating to Memorandum of Understanding between the Public Sector enterprises and the administrative Ministries/ Department.
6. Matters relating to delegation of power 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 Department except disputes relating to tax matters.
12. Matters relating to counselling, re-training and re-deployment of rationalized employees of Central PSEs.

The Department is headed by a Secretary who is assisted by an establishment with an overall sanctioned strength of 121 personnel. An organization chart is given at Annexure-I.

The Department has five constituent divisions: the Financial Policy Division, the Management Policy division, the MOU Division, the Administrative & coordination Division and Permanent Machinery of Arbitration. The financial Policy Division comprises the Public enterprises Survey Unit, the Policy Planning Unit Counselling Re-training and Re-deployment 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. 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 and evaluation of MOUs signed by PSEs with the Government.

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.