Consider the following statements about the Board for Reconstruction of Public Sector Enterprises (BRPSE):
Which of the above statements is/are correct?
Consider the following statements about the Board for Reconstruction of Public Sector Enterprises (BRPSE):
Which of the above statements is/are correct?
The correct option is D None of these
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 for strengthening, modernizing, reviving and restructuring of public sector enterprises. The Board comprises a Chairman in the rank of Minister of State, three Non-official Members, three Official Members and three Permanent Invitees.
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).
None of these
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 for strengthening, modernizing, reviving and restructuring of public sector enterprises. The Board comprises a Chairman in the rank of Minister of State, three Non-official Members, three Official Members and three Permanent Invitees.
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).
