The government has decided to wind up the Board for Reconstruction of Public Enterprises (BRPSE) as it works out fresh strategies for the revival and disinvestment in sick public sector units.

The move comes after a decision by the Union Cabinet to this effect in its meeting on November 7.

“The government has decided to wind up the BRPSE to streamline the multiple mechanisms for revival of sick Central Public Sector Enterprises,” said a recent notification by the Ministry of Heavy Industries.

The Board for Reconstruction of Public Enterprises (BRPSE) in the Department of Public Enterprises was set up over a decade ago in 2004 by the erstwhile UPA government as an advisory body to address issues of strengthening, modernisation, reviving, and restructuring of central public sector enterprises.

Divestment plans

However, the government, which is also keen on strategic sales in sick PSUs has also reviewed norms for restructuring and revival for such firms to ensure that these cases do not drag on for long.

“New policies are being put in place regarding sick PSUs where the nodal ministries will be more responsible for identifying firms for closure or revival. The objective is to ensure that it is done in a time-bound manner,” said an official familiar with the development.

Last month, the DPE issued fresh guidelines for streamlining the revival and closure of sick PSUs.

Simultaneously, the Finance Ministry is also finalising contours of a strategy for disinvestment in sick PSUs that would be led by the Cabinet Secretariat. Nodal Ministries and the Finance Ministry would identify firms for strategic sales.

This fiscal, the government has identified six PSUs including Hindustan Photo Films, HMT Bearings and HMT Watches for closure and five units including HMT Machine Tools, Heavy Engineering Corporation and NEPA for restructuring.