The Board for Industrial and Financial Reconstruction (BIFR) was an agency of the Government of India, established as a division of the Department of Financial Services within the Ministry of Finance, under the Sick Industrial Companies Act (SICA) of 1985. Its primary objective was to rehabilitate and revive ailing industrial companies, and in cases where revival was not feasible, to provide for their orderly liquidation, thereby preventing the spread of sickness to other enterprises and safeguarding the interests of various stakeholders.
The BIFR played a crucial role in the economic development of India, particularly during the 1990s when the country faced a severe crisis in its industrial sector. By providing a framework for the revival of sick companies, the BIFR helped to restore confidence in the Indian economy and paved the way for greater foreign investment and economic growth.
Despite its success, the BIFR was disbanded in 2016 as part of the Indian government’s efforts to streamline the functioning of various regulatory bodies. However, its legacy lives on as a testament to the power of government intervention in promoting economic development and fostering a healthy business environment.