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Ministry of Heavy Industries and Public Enterprises Ministry of Heavy Industries and Public Enterprises Ministry of Heavy Industries and Public Enterprises Government of India Government of India Newfields / Thomson Press Min of Heavy -1.p65 2 3/21/2006, 11:19 AM Ministry of Heavy Industries and Public Enterprises Government of India Min of Heavy -1.p65 1 3/21/2006, 11:19 AM Min of Heavy -1.p65 2 3/21/2006, 11:19 AM Ministry of Heavy Industries and Public Enterprises CONTENTS Department of Heavy Industry Chapter Page 1. The Ministry of Heavy Industries 07 & Public Enterprises – Introduction 2. An Overview of Performance 11 of Industrial Sectors and PSEs under the Department of Heavy Industry 3. Highlights 16 4. Public Sector Enterprises administered by the 20 Department of Heavy Industry 5. Heavy Electrical Industry & 33 other Industrial Machinery Sectors 6. Automotive Industry 39 7. Technology Upgradation and R&D 47 8. Welfare of Minorities 58 9. Empowerment/Welfare of Women 59 10. Vigilance 60 11. Progressive Use of Hindi 61 Annexures (I-X) 63 Abbreviations 79 Department of Public Enterprises Chapter Page 1. Public Enterprises Survey 83 2. Autonomy to PSEs and Professionalization 85 of their Boards 3. MoU System in Central Public 90 Sector Enterprises 4. Human Resources Development 94 5. Support Services to PSEs 101 6. Wage Policy and Manpower Rationalization 103 7. Categorisation of PSEs 106 8. Board for Reconstruction of Public Sector 107 Enterprises (BRPSE) 9. Scheme for Counselling, Retraining and 109 Redeployment 10. Implementation of Official Language Policy 111 11. Welfare of Women 112 Annexures (I-VI) 113 3 Min of Heavy -1.p65 3 3/21/2006, 11:19 AM Min of Heavy -1.p65 4 3/21/2006, 11:19 AM Department of Heavy Industry • The Ministry of Heavy Industries 07 & Public Enterprises – Introduction • An Overview of Performance 11 of Industrial Sectors and PSEs under the Department of Heavy Industry • Highlights 16 • Public Sector Enterprises administered by the 20 Department of Heavy Industry • Heavy Electrical Industry & 33 other Industrial Machinery Sectors • Automotive Industry 39 • Technology Upgradation and R&D 47 • Welfare of Minorities 58 • Empowerment/Welfare of Women 59 • Vigilance 60 • Progressive Use of Hindi 61 Annexures (I-X) 63 Abbreviations 79 5 Min of Heavy -1.p65 5 3/21/2006, 11:19 AM Min of Heavy -1.p65 6 3/21/2006, 11:19 AM Chapter - 1 The Ministry of Heavy Industries & Public Enterprises Introduction THE MINISTRY gear boxes. They cater to the need of goods and 1.1 The Ministry of Heavy Industries and Public services for almost all sectors of the economy, Enterprises focuses on promoting the including power, rail, road transport etc. The development and growth of capital goods and Department also administers a national level engineering industry in the country besides Laboratory i.e. the Fluid Control Research framing policy guidelines for Central Public Institute at Palakkad which caters to the needs Sector Enterprises (PSEs) and administratively of the flow industry for standardization of dealing with 48 PSEs. The Ministry comprises calibration. the Department of Heavy Industry and the 1.3 The Department consults various Industry Department of Public Enterprises. Associations and evolves plans for the growth of industry. The Department also assists industry DEPARTMENT OF HEAVY INDUSTRY (DHI) through policy initiatives, resolution of problems relating to tariffs and trade, promotion of 1.2 The Department of Heavy Industry is concerned technological collaboration and up-gradation, with the development of the heavy engineering research & development, etc. industry, machine tool industry, heavy electrical industry, industrial machinery and auto-industry 1.4 The Department of Heavy Industry is headed and administers 48 Central PSEs. The industries by a Secretary to the Government of India who covered by this Department meet the is supported by an Economic Adviser and an requirements of equipment for basic industries Integrated Finance Wing. The organizational such as steel, non-ferrous metals, fertilizers, chart of the Department is given at Annexure-I. refineries, petrochemicals, shipping, paper, 1.5 The Department closely interacts with PSEs cement, sugar, etc. The Department is under its administrative control to monitor their responsible for development of a wide range of performance. The Department also serves as an intermediate engineering products like castings, interface between these enterprises and other forgings, diesel engines, industrial gears and agencies of the Government and helps establish 7 Min of Heavy -1.p65 7 3/21/2006, 11:19 AM long term linkages to improve their order book 1.8 The Department provides financial support to the and ensure timely supplies to core sector PSEs in consultation with the Ministry of Finance customers. and Planning Commission for meeting their investment needs and implementation of PUBLIC SECTOR ENTERPRISES UNDER THE restructuring plans of sick /loss making PSEs DEPARTMENT sanctioned by the Government/BIFR. The 1.6 The PSEs under the Department are engaged in Department also provides financial support to manufacture of engineering/capital goods, the PSEs to implement Voluntary Retirement consultancy and contracting activities. The total Scheme approved by the Government for investment (Gross Block) in 48 Public Sector undertaking manpower rationalization in the Enterprises under the Department was about PSEs, where necessary to improve viability. Rs. 8826 crores as on 31st March, 2005 (Annexure–II). This computation of investment CITIZENS CHARTER does not include the fourteen PSEs which have 1.9 Public Sector Enterprises function under the been closed or whose operations have been Indian Companies Act, 1956 and the guidelines discontinued. The enterprises under the laid down by the Department of Public Department produce a wide range of products Enterprises. The Department of Heavy Industry ranging from machine tools, industrial is committed to the goal of effective and machinery, boilers, gas/steam/hydroturbines, responsive administration. Following steps have turbo generators, railway traction equipments, been taken in this direction: pressure vessels, AC locomotives, prime movers, (i) As part of the effort to streamline the electrical equipment and agricultural tractors, system of redressal of public grievances consumer products such as watches, paper, and staff grievances, a Joint Secretary tyres and salt. The Department is also concerned and a Director in this Department are with the affairs of Maruti Udyog Ltd., a joint functioning as Joint Secretary (Public sector company in the auto sector. Grievances) and Director (Staff 1.7 The Department undertakes and encourages Grievances) in order to ensure that the restructuring of Public Sector Enterprises under grievances are redressed in time. its administrative control in line with the overall (ii) In an effort to computerize various Public Sector Policy of the Government. As per matters in the Department, a Joint the Public Sector policy outlined in the National Secretary has been designated as IT Common Minimum Programme (NCMP), Manager who is also responsible for generally profit making companies will not be updating the websites of the Department privatized. Efforts will be made to modernize periodically. and restructure sick PSEs and chronically loss (iii) A Nodal Officer of the rank of Director making companies will either be sold off or has been designated in the Department closed after all employees are paid their for the redressal of grievances of legitimate dues and compensation. With a view Pensioners. to implement this mandate of the NCMP, a Board for Reconstruction of Public Sector Enterprises (iv) For the purpose of settlement of (BRPSE) has been established. BRPSE would grievances of the staff (disputes in Lok address the entire gamut of issues pertaining to Adalat) a Nodal Officer of the rank of revival/restructuring of public sector enterprises. Director has been designated in the 8 Min of Heavy -1.p65 8 3/21/2006, 11:19 AM Department in respect of officers/staff was made a full-fledged Department and is now members working in the Department. known as the Department of Public Enterprises (v) The Annual Reports of the Department (DPE). Presently, it is a part of Ministry of Heavy (both in English and Hindi) and other Industries & Public Enterprises. important information including 1.2 The Department of Public Enterprises acts as a initiatives and new policies are made nodal agency for all Central Public Sector available on the web-site of the Enterprises (CPSEs) and assists in policy Department, www.dhi.nic.in formulation pertaining to the role of PSEs in the (vi) An officer of the rank of Director in the economy as also in laying down policy Department has been nominated as guidelines on performance improvement and liaison officer for the work relating to evaluation, financial accounting, personnel redressal of grievances of SCs/STs in the management and in related areas for the PSEs. Department and PSEs under its control. It also collects, evaluates and maintains information on several areas in respect of PSEs. (vii) In order to create adequate awareness DPE also provides an interface between the regarding human rights especially of administrative Ministries and the PSEs. female employees, Department of Heavy Industry, in accordance with the 2. MANDATE OF DPE directions issued by the Government for 2.1 As per Allocation of Business Rules of the the preservation and enforcement of Govt., the following subjects have been rights to gender equality and justice to allotted to the Department of Public working women employees, has Enterprises:- constituted a Complaint Committee for • Bureau of Public Enterprises including redressal of complaints related to sexual Industrial Management Pool. harassment of women. • Coordination of matters of general (viii) Department of Heavy Industry policy of non-financial nature affecting encourages women employees to freely all public sector industrial and participate in all activities like seminars, commercial undertakings. competitions, training, meetings etc. to • Matters relating to Memorandum of ensure their integration into the Understanding mechanism of improving mainstream workforce.
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