The main objective of SICA is to determine sickness and
expedite the revival of potentially viable units or closure of unviable units
(unit here in refers to a Sick Industrial Company). It was expected that by
revival, idle investments in sick units will become productive and by closure,
the locked up investments in unviable units would get released for productive
use elsewhere.
The Board of experts named the Board for Industrial and
Financial Reconstruction (BIFR) was set up in January, 1987 and functional with
effect from 15th May 1987. The Appellate Authority for Industrial and
Financial Reconstruction (AAIRFR) was constituted in April 1987. Government
companies were brought under the purview of SICA in 1991 when extensive changes
were made in the Act including, inter-alia, changes in the criteria for
determining industrial sickness.
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