Board for sick PSUs notified

The government today notified the Board of Reconstruction of Public Sector Enterprises (BRPSE). The board will function out of the department of public enterprises (DPE), the nodal department for central public sector enterprises (CPSEs).

The establishment costs will be met through appropriate provisions in the DPE's budget.

The responsibilities of the board will include studying proposals for resuscitating all units referred as sick industries. Other loss-making CPSEs may be considered by the board either suo moto or upon reference by the administrative ministry.

The administrative ministry will be responsible for preparing a comprehensive package for revival. The package will indicate the statutory dues and suggested manner to liquidate them.

The board would also take the advice of experts in the relevant fields, if necessary, said the notification. It also has powers to accept, modify or reject proposals or send it back to the administrative ministry concerned for re-examination.

The board may consult all relevant authorities, including the finance and labour ministries, banks and other financial institutions and state governments in each case.

It may also recommend concessions like waiver of interest, penalties, taxes or loans as considered appropriate for revival. The board is also expected to indicate the source of funds for the package.