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
KARNATAKA EMULATING THE TRENDS OF GOI
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.,
IV) CONSTRUCTION :-
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)
VII) FINANCIAL COMPANIES/CORPORATIONS
1) Karnataka State Financial Corpn. Ltd
2) Karnataka State Industrial Investment & Dev.Corpn.Ltd., etc.
VIII) SOCIAL SECTOR/SECTION 25 COMPANIES
1) Dr.B.R. Ambedkar Development Corpn.Ltd
2) D. Devaraj Urs Truck Terminals Ltd.,
3) Karnataka Minorities Development Corporation Ltd., etc. Totally (28)
IX) LOSS MAKING, DISINVESTMENT, RESTRUCTURING, REVIVAL ENTERPRISES
x) NEW CREATIONS
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.
EVOLUTION OF DPE, KARNATAKA:
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
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
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
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:
All the important duties and responsibilities assigned to DPE are outlined below.
PROCEEDINGS OF GOVERNMENT OF KARNATAKA
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),
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
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
(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
(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
(v) Review regularly the proceedings of Board Meetings and evaluate performance
(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
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
DETAILS OF ONGOING SCHEMES OF DPE:
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
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
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.
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.
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:
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
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
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
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
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.
THE FIRST STATE TO EMULATE THE CONTEMPORARY REVOLUTIONARY TRENDS
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.