The Prime Minister has constituted the Board for Reconstruction of Public Sector Enterprises. The Chairman of the Board will be Dr. Prahlad Basu former Secretary Mines and Programme Implementation.

The members are Mr. Arvind Pande - Former Chairman SAIL , Dr. Susheel Khanna –Prof IIM Calcutta, and Mr. T.S.Vijayraghavan - former Secretary Heavy Industries and Public Enterprises.

The Official members are Secretary Public Enterprises, Secretary Dis-investment and Secretary Expenditure.

The broad terms of reference of the Board are

a) To advise the Government on ways and means for strengthening public sector enterprises and making them more autonomous and professional.

b) To consider restructuring - financial , organizational and business ( including diversification , joint ventures seeking strategic partners, mergers and acquisitions.) of CPSEs and suggest ways and means for funding such schemes.

c) To advise the government on disinvestments / closure/ sale in full or part in respect of chronically sick / loss making companies which cannot be revived.

d) To monitor incipient sickness ( incurring recurring losses ) in CPSEs.

All sick CPSEs will be referred to the board for revival / restructuring. The definition of sick company will be "a company which has accumulated losses in nay financial year equal to 50% or more of its average networth during 4 years immediately preceding such financial year and /or a company which is sick company with in the meaning of sick Industrial Companies ( Special Provision) Act , 1985(SICA).

The concerned administrative Ministry / Department would be responsible for preparing a comprehensive package for revival / rehabilitation or closure of loss making CPSEs after due consultations with various stake holders including the concerned Ministries with in a prescribed time frame.