Mantralaya sources told The Financial Express on Wednesday that the state Cabinet cleared the Maharashtra State public sector enterprise (restructuring and other special provisions) ordinance 2000.

Apart from the chairman, the board would comprise of two other members. The board would have a tenure of three years.

The formation of such a board was announced by the finance minister Jayant Patil while presenting the white paper on state finances in December last year and subsequently while presenting the current year's budget. Setting up of such a board would be beneficial as its recommendations would be useful in revival or closure of loss-making state enterprises and also for its divestments, the minister had said. The accumulated losses by the 60 state enterprises are about Rs 350 crore.

The board would deemed to be a civil court for the purpose of section 195 and chapter XXVI of the Code of Criminal Procedure, 1973. The proceedings before the board would deemed to be judicial one within the meaning of sections 193 and 228 of IPC and for the purpose of section 196 of the CrPC.The government can make a reference to the board in respect of state enterprises where it wants to withdraw its ownership or management or divest its control especially when the financial condition of such enterprises is not satisfactory and requires remedial measures.

The government will also make such a reference when two or more state enterprises or subsidiaries can be merged for improving their financial position, operations and management.

The board will be given powers to appoint an assisting agency to inquire into the financial condition of such enterprises and prepare a revival scheme within 90 days.