The Government of Karnataka set up Karnataka State Bureau of Public Enterprises (KSBPE) in July 1980. The main functions of KSBPE were the preparation of Annual Report of SLPEs for submission to the Legislature, co-ordinate conduct of management training programs and develop MIS systems.
The GOK had set up a Committee headed by Sri. P. Padmanabhan, IAS for study of enhancement of performance of PSUs. The Padmanabhan Committee recommended creation of a separate nodal agency cutting across all the departments at the level of secretariat for this purpose.
In 2002, the KSBPE was converted in to a department and renamed as Department of Dis-investment and Public Enterprise Reforms (DDPER), within Dept. of Personnel & Administrative Reforms (DPAR).
Main functions of DDPER were to minimize and resolve problems with regard to disinvestments, amalgamation, structural re-organization, financial management, closure, privatization of PSEs
In 2005, the DDPER is converted into a full fledged independent, separate department in Secretariat and named as Department of Public Enterprises (DPE). DPE is a distinct IAS cadre post. DPE is headed by a Principal Secretary to Govt. and assisted by Joint Secretary to Govt., Deputy Secretary to Govt., Under Secretaries to Govt., and other Staff. Government of Karnataka has assigned clear duties and responsibilities to DPE through Government Order No.DPAR:538:SA A SE:2007 dated:13/03/2008.
DPE acts as an interface between administrative departments and legislative committees. DPE is also a bridge between State Government and GOI and Accountant General's office. DPE is a catalyst for invigorating all the KSLPEs.