If a public sector was making losses continuously, then it is referred to which organisation?

BIFR

The correct answer is option 1- BIFR.

If a public sector was making losses continuously, then it is referred to BIFR.

If a public sector was making losses continuously, it was referred to the Board for Industrial and Financial Reconstruction (BIFR). All public sector units were referred to the Board of Industrial and Financial Reconstruction to decide whether a sick unit was to be restructured or closed down. The Board has reconsidered revival and rehabilitation schemes for some cases and winding up for a number of units. There is a lot of resentment amongst workers of the units which are to be closed down. A National Renewal Fund was set up by the government to retrain or redeploy retrenched labour and to provide compensation to public sector employees seeking voluntary retirement.

OTHER OPTIONS-

• MoU- Memorandum of Understanding: Improvement of performance through a MoU (Memorandum of Understanding) system by which managements are to be granted greater autonomy but held accountable for specified results.

• MNCs- Multinational Companies. In the last 2 decades MNCs have played an important role in the Indian economy. They are characterised by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world. 

• PSUs- Public sector units. The public sector consists of various organisations owned and managed by the government. These organisations may either be partly or wholly owned by the central or state government.