Categorization of new CPSEs and CPSEs created for asset management of disinvested CPSEs: DPE

Categorization of new CPSEs and CPSEs created for asset management of disinvested CPSEs: DPE OM dated 11.12.2023

PD-1-08/0002/2023-DPE
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan,
Block No.14, C.G.0. Complex,
Lodhi Road, New Delhi-110 003.
Dated: 11th December,2023

OFFICE MEMORANDUM

Subject: Categorization of new CPSEs and CPSEs created for asset management of disinvested CPSEs.

The undersigned is directed to refer to this Department OM No. 9(17)/2011-GM dated 30.11.2011 prescribing criteria/parameters for categorization of central Public Sector Enterprises (CPSE). The issue of making the process of grant of initial categorisation to CPSE simple and easy has been engaging the attention of this Department for some time. Accordingly, the following modifications are made in the Department’s OM 9(17)/2011-GM dated 30.11.2011 for categorisation of CPSEs:

• All asset holding CPSEs created for managing the non-core assets of the CPSEs under disinvestment will stand categorised as Schedule ‘C’ from the date of their formation.
• Similarly, already approved CPSE’s and yet to be made functional will be categorized as Schedule ‘C’ as and when the concerned administrative Ministry/Department deems it necessary to make the said company functional.
• Administrative Ministries can also propose and obtain the concurrence of the Cabinet/Alternate Mechanism (as applicable to disinvestment cases) if they want the CPSE to be categorized in higher schedule as ‘A’ or ‘B’ in respect of (i) & (ii) above.
• For upgradation of any functional CPSE from existing schedule to a higher schedule for instance ‘C’ to ‘B’ schedule, the extant procedure prescribed in DPE OM No 9(17)/2011-GM dated 30.11.2011 would continue to apply.

3. For para 2 (i) and (ii) above, formal orders conferring the Schedule ‘C’ status to the CPSE would be issued by the concerned Administrative Ministry/Department under intimation to DPE. The CPSEs which have already been categorized will remain in their existing schedule.

4. All the administrative Ministries/Department are requested to take note of the above modifications in the guidelines for categorization of CPSEs and take appropriate action accordingly.

5. This issues with the approval of competent authority.

पवनेश कुमार शर्मा / P.K. Sharma
निदेशक / Director
Tel: 011-24363066

To Secretaries of all administrative Ministries/Departments

Copy for information to:

i) Cabinet Secretariat.
ii) Secretary, PESB.

Source: DPE