An ordinance to establish 'Corporate and Industrial Restructuring Corporation' (CIRC) has been promulgated on 22nd September 2000. As envisaged in the Economic Revival Programmme, (Appendix I), the purpose of the establishment of CIRC is to promote revitalization of the national economy by reviving sick industrial units in the country. In this regard, the Corporation will take over the non-performing assets of Nationalized Commercial Banks (NCBs) and Development Finance Institutions (DFIs). The main objectives of the Corporation are:

To deal, enter into and sign agreements and contracts with any financial institution in respect of non-performing assets and take appropriate actions i.e., the corporation may acquire, purchase, manage, restructure, rehabilitate, sale of sick unit with or without Balancing, Modernization and Replacement and dispose off non-performing assets.

To initiate any or all activities for the recovery of non-performing assets.

To verify/probe, before taking any action, the dispute relating to liability of the obligor in respect of the non-performing assets or cases relating thereto, including the cases of fraud, misrepresentation, and breach of any provision of law, rule, regulation of the State Bank, regarding calculation, existence and repayment of a financial obligation or outstanding loan or interest claimed against obligor. In this regard, a verification committee will be formed that will prepare report and give its recommendations.

To engage and enter into agreements with financial and other institutions, and financial, legal, accounting, valuation and other specialist, for the purpose of corporation's business.

To purchase, amalgamate, enter into partnerships, form joint ventures, making profit sharing arrangements or cooperate or participate with any company.