Cabinet Reshuffle: Big decision of Modi government, new department added in Finance Ministry
To help with its ambitious disinvestment program, the government established the Department of Public Enterprises (DPE) within the Ministry of Finance. Previously, the Department of Public Enterprises was part of the Ministry of Heavy Industries and Public Enterprises.
'After sub-heading (5) Department of Financial Services in the Ministry of Finance, the following sub-heading shall be inserted- (6) Department of Public Enterprises,' according to a Cabinet Secretariat notification dated July 6, 2021. According to the gazette notification, these rules will be known as the Government of India (Allocation of Business) Three Hundred Sixty-first Amendment Rules, 2021. As a result, it will be the Ministry of Finance's sixth department.
Target to raise Rs 1.75 lakh crore from stake sale
This change has been made ahead of a possible cabinet expansion later in the day. Finance Minister Nirmala Sitharaman in her budget for the financial year 2021-22 had announced a major privatization agenda, which includes privatization of two public sector banks and a general insurance company.
Apart from this, the Life Insurance Corporation of India (LIC) also proposes to bring an initial public offering (IPO) and sell the remaining stake in IDBI Bank. The government has set a target of raising Rs 1.75 lakh crore from stake in public sector companies and financial institutions during 2021-22.
Leaders met at the Prime Minister's residence
It is known that ahead of the reshuffle and expansion in the Union Council of Ministers on Wednesday evening, the potential faces of the ministerial post reached Prime Minister Narendra Modi at his official residence. Union Home Minister Amit Shah and Bharatiya Janata Party (BJP) President JP Nadda are also present at the Prime Minister's residence.