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Government of Karnataka

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​​​​​​​​​Welcome to Department of Public Enterprises, Karnataka ​​​​ 

​In the venerable foot steps of great visionary and Statesman Hon’ble Prime Minister of India, with copious blessings and outstanding leadership of Hon’ble Chief Minister of Karnataka and under abundant guidance of Minister of Department of Public Enterprises, Akin to august and wise thinking and shrewd stewardship of Esteemed Chief Secretary and with staunch support of seniors, subordinates, colleagues and in the interest of the cadre and in the interest of the people of Karnataka, DPE Karnataka is built up brick by brick and nurtured carefully is an elegant citadel, strikingly tall, visibly useful niche among all the departments of Karnataka, shall witness the rise and rise of KSLPE emphires for generations to come. 

The Evolutionary Trends of Goi
The root of evolution lies in the arena of fiscal federalism in India, which had been a minefield of political conflicts even in the pre-reform era, had been showing signs of becoming a full-fledged battlefield in the wake of the economic reform programme initiated in 1991. The experience of federal governance in different parts of the world has been one of persisting tensions and conflicts of various types between the central and sub central governments. Independent India, having opted for a federal structure with a strong Union, has been no exception to this. Viewed against this backdrop, any radical agenda of economic reforms, the Government of India has followed and resulted in industrialization of the country rather than agrarian development which was in vogue since so many decades.

However, the Government of India has also made several sojourns like categorization of enterprises into A, B and C demarcating them for different types of sectors. Category A was mainly for public sectors, whereas category B was for public and private sectors. Category C was the tiny and cottage industries to mobilize enough potential to uplift weaker sections of the society and the employment generation of the country. The result, inevitably, was a co-ordination link between the Centre and the States for establishment of different enterprises under various sectors catering to the needs of the locational operations.

The Karnataka Government has further improved upon Government of India’s classification and made different categories as follows:-

1) Karnataka Soaps & Detergents Ltd., 
3) Mysore Paper Mills Ltd., etc. Totally (9)

1) Karnataka Power Corporation Ltd.,
2) KPC Bidadi Power Corporation Pvt. Limited 
3) Karnataka Power Transmission Corporation Limited,etc. Totally (8)

1) Hutti Gold Mines Company Ltd., 
2) Mysore Minerals Ltd.,
1) Karnataka State Police Housing Corporation Ltd. 
2) Karnataka Housing Board, etc. Totally (6)
1) Karnataka State Road Transport Corporation 
Bangalore Metropolitan Transport 
Karnataka State Tourism Development Corporation Ltd., etc. Totally (6)
1) Karnataka State Beverages Corpn.Ltd 
2) Mysore Sales International Ltd. etc. Totally (10)

1) Karnataka State Financial Corpn. Ltd 
2) Karnataka State Industrial Investment & Dev.Corpn.Ltd., etc. Totally (5)

1) Dr.B.R. Ambedkar Development Corpn.Ltd 
2) D. Devaraj Urs Truck Terminals Ltd.,
3) Karnataka Minorities Development Corporation Ltd., etc. Totally (28)


Perhaps, Karnataka is only state which has special purpose vehicles on every subject. There were 105 PSUs in Karnataka in the past, now have been reduced to 80. The cumulative investments in these PSUs has been around 80 thousand crores. KSLPEs are making profit of over thousand crores annually.
In the light of Economic Liberalization initiated by Government of India the system of MoU has been strengthened, inducted among all Central Public Sector Undertakings and implemented vigoursly. The results are visible today. We have Mini-Ratnas, Ratnas and Maha-Ratnas among the CPSUs.

In the light of above backdrop, 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 programmes 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 DPAR. 
Main functions of DDPER were to minimize and resolve problems with regard to disinvestments, amalgamation, structural re-organization, financial management, closure, privitisation, execution of MoUs etc.
In 2005, the DDPER is converted into a full fledged independent, separate department in Secretariat and named as Department of Public Enterprises. DPE is a distinct IAS cadre post. DPE is headed by a Principal Secretary and assisted by Secretary, Joint Secretary, Joint Controller of Accounts, Deputy Secretaries, Under Secretaries and other Staff.
DPE is performing the roles of HPC, taskforce and Secretariat for all the PSEs. DPE is 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.
At the time of offing into a full fledge independent cadre assignment, DPE’s role (duties and responsibilities) is limited, not clear and opaque. DPE has strived very hard to gain clear duties and responsibilities. Having been convinced, Government of Karnataka is pleased to assign clear duties and responsibilities to DPE through Government Order No.DPAR:538:SA A SE:2007 dated:13/03/2008.
DPE, regularly reviews the meeting proceedings of all Boards and Corporations and conveys necessary feedback. Prompt opinions/advice constantly given to all the administrative departments/SLPEs concerned, including many other important functions entrusted in G.O No. DPAR 538 SA A SE 2007, dated: 13-03-2008.

All the important duties and responsibilities assigned to DPE are outlined below.

SUBJECT: Functions and powers of Department of Public 
READ: 1. G.O. No. CI 204 ICS 79, dated 5.1.1979
DPAR 654 SGD 80, Bangalore dated: 7-7-1980.
DPAR (BPE) SBD 81 dated: 3-3-1981
DPAR (BPE) 15 MEA 82 dated 09-02-1982.
DPAR (BPE) SPU 83 dated 07-09-1983
DCA/M/248 dated 21-12-1997
Notification No. DCA 3 ARB 2004, dtd. 24-3-05
Circular No. DPAR (BPE) 26 SPU 97, dtd. 29-3-97
Minutes of the meeting held on 17-08-2007.
Circular No. DPE 13 ARU 2007 (P),
Dated 7-9-2007

The role of Department of Public Enterprises has been carried forward from the then Department of Disinvestment and Public Enterprises Reforms(DDPER) which was performing the functions of earlier KSBPE. It has been found necessary to reiterate the functions and powers of Department of Public Enterprises vis-a-vis Administrative Department and State Public Sector Enterprises (PSEs). Hence the following Order. 
Government Order No. DPAR 538 SA A SE 2007 
Bangalore , Dated 13.3.2008
The Department of Public Enterprises is entrusted with following duties and responsibilities in matters pertaining to working of State Public Sector Enterprises. 
1. All matters/subjects allocated vide Rule P of Schedule II of Karnataka Government (Allocation of Business) Rules, 1977 and its amendments. 
2. In terms of 72B of the Karnataka Government (Transaction of Business) Rules, 1977, all Administrative Departments shall consult the Department of Public Enterprises on any proposal specified below, before soliciting the approval of the Cabinet or otherwise.
(i) Creation of new Corporations or Companies either wholly owned or partially financed by the State Government or by Public Sector Undertakings.
(ii) Participation by the State Government or a Public Sector Undertaking, other than the Karnataka State Industrial investment and Development Corporation and the Karnataka State Financial Corporation, in providing Share Capital to a new or an existing Corporation or Company.
(iii) Providing share capital exceeding Rupees Fifty lakhs by the Karnataka State Industrial Investment and Development Corporation and the Karnataka State Financial Corporation to a new or an existing Corporation or Company. 
(iv) Winding up, amalgamation or such other major schemes of structural re-organization of Public Sector Undertakings.
(v) Increase in capital cost estimates of State owned Public Corporation, Companies enterprises and projects where such increase is more than twenty percent or Rupee twenty five lakhs whichever is less.
3. (i) The DPE as an arm of the Government shall function as an overseeing, co-ordinating and monitoring authority in respect of matter relating to functioning of PSEs with a view to guide the PSEs in various issues. The Principal Secretary, DPE or his nominee not below the rank of Deputy Secretary, shall be nominated unless otherwise specifically decides as director on each of the Boards of PSEs, provided that no individual shall be a director on more then ten companies at a given time.
(ii) Lay down, with the approval of Government general policy relating to privatization, restructuring of PSEs. 
(iii) Formulation of policy guidelines with DPE approval regarding financial management, wage settlement, Human Resource Development, Performance appraisals etc in the respect of PSEs.
(iv) Execution of MOUs between PSEs and DPE in addition to the performing the role of HPC, task force, implementation of MOUs, monitoring of all the PSEs. 
(v) Review regularly the proceedings of Board Meetings and evaluate performance of PSEs. 
(vi) Undertake every year in-depth study of selected PSEs. 
(vii) Function as interface between PSEs/ Administrative Departments and other bodies like Legislature Committee, Indian Audit and Accounts Department, Departments of Government of India and other State Public Sector Enterprises etc. 
(viii) The DPE shall be consulted on matters relating to:
Amendments to memorandum and articles and Association. 
Privatization/disinvestments/reorganization/re-habilitation proposals of PSEs
Disbursement of bonus/gratuity. 
Revision of pay scales. 
Creation of Posts where minimum of scale is Rs. 1,700 and above.
Appointment of Officials on contract basis. 
Fixing of sitting fees for Directors of Boards
Instructions of any new welfare measures/perquisites to officials/non-officials CEOs, Directors, other officials and employees. 
Foreign Travel proposals of PSE Officials of all status
(ix) Function as a data bank in respect of PSEs regarding empanelment of candidates for executive posts/circulate among PSEs requirement of Public Enterprises Selection Board for Executive posts. DPE should be consulted in appointment of Board of Directors. 
(x) Bring out annual Survey Reports on the performance of PSEs and cause it placed before the state legislature.
(xi) Function as Secretariat for all State PSEs i.e. performing similar role of DPAR and Planning Departments for all Government Departments.
(xii) Conduct regular training courses for personnel of PSEs.
(xiii) Any other duties that may be entrusted by Government from time to time.
4. The PSEs as a rule shall route their proposals to the DPE only through their respective Administrative Departments. The Administrative Departments shall in turn forward the proposals with their considered view/suggestions to DPE with the approval of Principal Secretary/Secretary of the concerned Department. 
By order and in the name of
the President of India
Under Secretary to Government
DPAR (Services -III)
With a view to carry forward implementation of the duties and responsibilities envisaged in the Government Order, the following schemes were designed in the last 2 years i.e., 2008-09 and 2009-10 and being implemented earnestly and smoothly. 


G.O.No.DPE:38:MSI:2008, dated:04/04/2009 [G.O.Enclosed]
SCHEME:1) DPE has been declared as Secretariat for all the PSEs. Two important schemes are assigned to DPE. Training of employees of all status of KSLPEs in the Institutions of excellence within the country. So far 450 officials of all status are trained and equipped with necessary skills for enhancing the performance of their own State PSEs. During the year 2009-10 about 600 employees of all status of KSLPEs trained in 10 institutions of excellence within/outside the State. [G.O.No.DPAR:538:SA A SE:2007 dated:13/03/2008 enclosed]

SCHEME: 2) Continuation of Secretariat Posts of DPE [G.O. No.DPAR:534:SAASE:2009 dated:03/11/2009 enclosed]

SCHEME: 3) During 2007-08 and 2008-09 28 SLPEs have been evaluated by reputed outside agencies/institutions. During 2009-10, 21 SLPEs have been proposed for evaluation. The evaluation studies of 2009-10 have already been commenced and reports will be ready by end of the January 2010. [G.O.No.DPE:15:ARU:2009,dated:11/11/2009and G.O.No.DPE:15:ARU:2009 dated:30/11/2009- enclosed]

SCHEME:4) DPE is performing the roles of HPC, taskforce and Secretariat for all the PSEs. DPE is interface between administrative departments and legislative committees. DPE is also a bridge between State Government, Accountant Generals Office and GoI. DPE is a catalyst for invigorating all the KSLPEs. [G.O.No.DPAR 538 SA A SE 2007, dated:13-03-2008. enclosed]

SCHEME: 5) DPE has been given a mandate to regularly review the meeting proceedings of all Boards and Corporations and convey necessary feedback. Prompt opinions/advice constantly given to all the administrative department/SLPEs concerned. [G.O.No.DPAR 538 SA A SE 2007, dated:13-03-2008. enclosed]

SCHEME: 6) DPE is implementing MIS System which will link the data of all the KSLPEs with GoI. DPE will be in a position to place the data of all the KSLPEs with DPE, GOI. [Government of India D.O.letter No.DPE:10(10):2008-Fin. Dated:25/09/2009 enclosed]

SCHEME: 7) DPE has created a eÕÁ£À¨sÀAqÁgÀ (library) vide G.O.No. DPE 12 MSI 2009, dated: 23-05-2009. [G.O.Enclosed]

SCHEME: 8) DPE has created a revolutionary path breaking new scheme known as “MoU” between SLPEs and Government through G.O. No. DPE 10 MSI 2009, dated: 04-04-2009 [G.O.Enclosed]

The instrument of MoU is nothing but, a vision statement of our SOEs for coming three years. The document of MoU mentions self imposed physical and financial targets for coming three years and promises made to the Government about enhancement of performance. In the past, PSUs used to come before Government only with grievances and problems. Now there is a change in trend i.e. PSUs, have to come before the Government with good performance, so that SOEs will be awarded and rewarded. It is obvious that review of performance and awarding & rewarding is always entrusted to neutral department like DPE. After introducing MoU system for the first time in Karnataka, discipline is restored and order is brought to all PSUs, in-addition to empowering all the administrative departments. The system of MoU has seeded silent revolution among SOEs of Karnataka.

In the same contest DPE underlines that this is a well-cherished dream scheme of Hon’ble Chief Minister. The system of MoU is approved by Hon’ble Legislature. It is a stuatutory obligation on the part of all the KSLPEs, and all departments including DPE.

Further, DPE would like to add that, this Department is a facilitator and catalyst for enhancement of performance and initiator of competition among PSUs. Therefore, the responsibility of implementing the favourate scheme of Hon’ble Chief Minister, have to be shouldered by one and all at the earliest possible.

SCHEME: 9) DPE has initiated five “Chief Minister’s Ratna Awards through G.O. No. DPE 23 SPU 2009, dated: 04-04-2009 [G.O.Enclosed]

SCHEME: 10) DPE has also launched a scheme of study of best practices/success stories in Institutions of excellence within and outside the country by the award winning officers of Karnataka SLPEs and DPE through G.O.No. DPE 11 MSI 2009, dated: 22-07-2009 [G.O.Enclosed]

SCHEME: 11) Staff Screening Committee:
Government has created a staff screening selection/recommendation committee to select person for the posts of CEO’s, Directors and Senior Technical Personnel for Public Sector Enterprises under the Chairmanship of the Principal Secretary. The objective of the scheme is to post right person in a right place and to simply the complex matrix of postings. [G.O.No.DPE:04:ARU:2008 dated:27/08/2008 Enclosed]

By implementing above Government orders DPE has succeeded in creating competition among Karnataka PUSs on one hand and also with Private Sector Undertakings on the other hand. 

DPE is playing the role of catalyst to bring forth order and restore discipline among all the PSEs. Infact, though not visible but measurable impact of silent revolution is seeded by the magical wand i.e. DPE, through the mechanism of MoU.
DPE is facilitating all the KSLPEs to enhance performance and turn around of all the manufacturing and commercial PSEs of Karnataka on one hand and realize full potential of social justice special purpose vehicles on the other hand.

It is a befitting and suitable occasion to mention that DPE, Karnataka, has been consciously created by the GoK to act as champion of KSLPEs. Therefore DPE has confidently absorbed, digested and amalgamated the best features of PSUs and Private Enterprises combined.

Hopefully, in the future some of the SOEs may become Mini Ratnas, Maha Ratnas and universally competitive. I am sure, the vehicle of DPE by surging forward the developed assets and prosperity of SOEs of Karnataka and employment potential created thereoff with churned out cream of excellence shall soft land all the SLPEs on the summit of glory ushering the dawn of golden era in the near future like Central Public Section Undertakings.

The model MoU of Karnataka is circulated among all States by Government of India for implementation. Union Government has requested all the Hon’ble Chief Ministers and Chief Secretaries of all other States to emulate the model MoU. Karnataka is the first and pioneer State among all the other States surging forward this unique and novel system for posterity. 

If the PSUs are prosperous, healthy and efficient vehicles surging forward delivery of developed assets to the people, the nation or the State becomes prosperous and self-reliant. Therefore DPE would like to underline, the need to encourage, sustain, restructure, innovate, amalgamate, disinvest and create new PSUs continuously. DPE intends to make the existence of PSUs more and more meaningful, useful and result oriented, purposeful to the people.
Karnataka is the first state among all the states of the union to absorb, digest and assimilate the revolutionary concepts. In this direction the vehicle i.e., DPE, Karnataka has been consciously created by State Government to enhance the performance of PSUs in Karnataka. DPE has confident to achieve turn-around of all PSU’s in future. DPE has already seeded silent revolution for enhancement on performance on one hand and restored discipline and brought forth order to all the PSU’s on the other hand.
Finally to conclude DPE is now a full-pledged, totally functional, independent, useful, purposeful, meaningful, result oriented and relevant to the needs of the Government and people of Karnataka in its present existence. Therefore DPE has arrived and currently most happening department in Government of Karnataka.


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