BOARD FOR RECONSTRUCTION OF PUBLIC SECTOR ENTERPRISES
Board for Reconstruction of Public Sector Enterprises (BRPSE) was established in December 2004 as an advisory body to advise the Government on the strategies, measures and schemes related to strengthening, modernizing, reviving and restructuring of public sector enterprises.
The Board comprises a Chairman, three Non-official Members and three official Members. In addition, Chairman, Public Enterprises Selection Board (PESB), Chairman, Standing Conference of Public Enterprises (SCOPE) and Chairman, Oil and Natural Gas Corporation Ltd. (ONGC) are the permanent invitees. The Secretaries of the Ministry/ Department of those PSEs whose proposals are considered by the Board are invited to attend those Board meetings as Special invitees when the proposals of the PSEs under their administrative control are considered. Chairman, Members, Permanent and Special Invitees on the Board are on part-time basis. The Board has a Secretary in the rank of Additional Secretary to the Government of India.
Functions of BRPSE
- To advise the Government on ways and means for strengthening public sector enterprises in general and making them more autonomous and professional;
- To consider restructuring – financial, organizational and business (including diversification, joint ventures, seeking strategic partners, merger and acquisition) – of CPSEs and suggest ways and means for funding such schemes;
- To examine the proposals of the administrative Ministries for revival/ restructuring of sick/loss making CPSEs for their turnaround;
- To advise the Government on disinvestments/closure/sale in full or part, in respect of chronically sick/loss making companies which cannot be revived. In respect of such unviable companies the Board would also advise the Government about sources of fund including sale of surplus assets of the enterprise for the payment of all legitimate dues and compensation to workers and other costs of closure;
- To monitor incipient sickness in CPSEs; and
- To advise the Government on such other matters as may be assigned to it by the Government from time to time.
Definition of Sick PSEs
A CPSE will be considered ‘sick’ if it has accumulated losses in any financial year equal to 50% or more of its average net worth during 4 years immediately preceding such financial year and/or a CPSE which is a sick company within the meaning of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)..
Procedure for referring the sick CPSEs to BRPSE
The concerned administrative Ministry/Department identify the sick enterprises as per the definition given in DPE’s Resolution dated 6.12.2004 and make a reference to the BRPSE through DPE in the prescribed format for its consideration and making recommendations to the Government
Follow up action on the recommendations of BRPSE
The recommendations of the Board are communicated to the concerned administrative Ministries/Departments who will process them for obtaining the approval of the Competent Authority.