Memorandum of Understanding (MoU) is a negotiated agreement between the Administrative Ministry/ Department and CPSEs.

The division works as a secretariat of Inter-Ministerial Committee (chaired by Secretary, DPE) for implementation of MoU framework whose purpose is to measure the performance of the management of the CPSEs on key selected parameters.

The division also monitors and compiles the information on CAPEX incurred by select CPSEs (having annual CAPEX target of more than Rs. 500 Crore).