sectors i.e., capital goods, auto and heavy electrical equipment in the country; administers 31
Central Public Sector Enterprises (CPSEs); 5 Autonomous Organizations and frames policy
guidelines for Central Public Sector Enterprises (CPSEs) and overall administration of CPSEs. In
fulfilling its role, the Department coordinates with other ministries, CPSEs and concerned
organizations. Some of the important tasks of the Department are listed as follows: coordination
of matters of general policy affecting all public sector enterprises; evaluation and monitoring the
performance of public sector enterprises, including the Memorandum of Understanding
mechanism; matters relating to Permanent Machinery of Arbitration for such enterprises;
counselling, training and rehabilitation of employees in CPSUs, rendering advice relating to
revival, restructuring or closure of public sector enterprises including the mechanisms; and
categorisation of central public sector enterprises including conferring ‘Ratna’ status.
Relevant Websites: www.dhi.nic.in www.dpe.gov.in
Micro, Small and Medium Enterprises
The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant
and dynamic sector of the Indian economy over the last five decades. MSMEs not only play
crucial role in providing large employment opportunities at comparatively lower capital cost than
large industries but also help in industrialization of rural & backward areas, thereby, reducing
regional imbalances, assuring more equitable distribution of national income and wealth.
MSMEs are complementary to large industries as ancillary units and this sector contributes
enormously to the socio-economic development of the country. Ministry of Micro, Small &
Medium Enterprises envisions a vibrant sector by promoting growth and development of the
sector, including Khadi, Village and Coir Industries, in cooperation with concerned ministries/
departments, state governments and other stakeholders, through providing support to existing
enterprises and encouraging creation of new enterprises.
The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in
2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of
the sector. The Act provides the first-ever legal framework for recognition of the concept of
“enterprise” which comprises both manufacturing and service entities. It defines medium
enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely,
micro, small and medium. The Act also provides for a statutory consultative mechanism at the
national level with balanced representation of all sections of stakeholders, particularly the three
classes of enterprises; and with a wide range of advisory function.
In 2007, subsequent to an amendment of the Government of India (Allocation of Business)
Rules, 1961, erstwhile Ministry of Small Scale Industries and the Ministry of Agro and Rural
Industries were merged to form the Ministry of Micro, Small and Medium Enterprises. This
Ministry now designs policies and promotes / facilitates programmes, projects and schemes and
monitors their implementation with a view to assisting MSMEs and help them to scale up. The
primary responsibility of promotion and development of MSMEs is of the state governments.
However, the Government of India, supplements the efforts of the states through various
initiatives. The role of the Ministry and its organizations is to assist the states in their efforts to
encourage entrepreneurship, employment and livelihood opportunities and enhance the
competitiveness of MSMEs in the changed economic scenario.
Relevant Website: www.msme.gov.in