In December 1991, which act was amended to bring public enterprises under the purview of the Board for Industrial and Financial Reconstruction (BIFR) as part of the country's economic reforms program?

The correct answer is Sick Industrial Companies Act.

Key Points

• In December 1991, the Sick Industrial Companies Act (SICA) was amended to include public enterprises under the purview of the Board for Industrial and Financial Reconstruction (BIFR).
• The amendment was part of the broader economic reforms initiated by the Indian government to revitalize the industrial sector.
• The primary objective of SICA was to detect sick and potentially sick companies at an early stage and to expedite their revival.
• BIFR was established under SICA to address the problems of industrial sickness and to determine measures for their rehabilitation.

Additional Information

• Board for Industrial and Financial Reconstruction (BIFR)
  • BIFR was set up in January 1987 under the Sick Industrial Companies Act (SICA).
  • Its purpose was to determine the preventive, ameliorative, remedial, and other measures which need to be taken concerning sick industrial companies.
  • The board was also empowered to consider measures for the revival and rehabilitation of potentially viable sick industrial companies.
  • It could also recommend the winding up of non-viable companies.
• Sick Industrial Companies (Special Provisions) Act, 1985 (SICA)
  • SICA was enacted to detect and deal with sick and potentially sick companies in India.
  • It aimed to provide timely detection and corrective actions to revive the sick industries.
  • The act provided for the constitution of the BIFR to perform such functions.
  • SICA was eventually repealed in 2003 with the introduction of the Sick Industrial Companies (Special Provisions) Repeal Act, 2003.
• Industrial Policy Reforms of 1991
  • The 1991 reforms marked a significant shift in the economic policy of India, moving towards liberalization, privatization, and globalization.
  • These reforms included deregulation of industries, reduction of import tariffs, and reforms in the financial sector.
  • The objective was to promote competitive efficiency and to integrate the Indian economy with the global market.
  • The reforms aimed to reduce the role of the public sector and encourage private sector participation in the economy.
• Economic Reforms in India
  • The economic reforms of 1991 were initiated in response to a severe balance of payments crisis.
  • The reforms included measures to stabilize the economy and to create a more open and market-oriented economy.
  • Key reforms included fiscal consolidation, liberalization of trade and investment policies, and financial sector reforms.
  • The reforms have significantly contributed to the growth and development of the Indian economy over the past three decades.