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Q.

Do you think partial disinvestment of PSUs will bring more professionalism into the management of these companies thus improving their operational efficiencies?

Asked by Good Citizen, 07 Oct '09 02:49 pm
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Answers (2)

1.

IN the last decade, many steps have been taken to disinvest public sector enterprises in India, both in terms of listing central public sector enterprises companies on the stock market and selling controlling interest. After a lull, disinvestment is now back on the UPA governments agenda. There appears to be a political consensus on disinvestment in non-navratna profit making enterprises, and in chronic loss making PSUs. Hence, it is important to revisit the issues of rationale and mechanisms of disinvestment.

The main rationale for disinvestment is the increased efficiency of utilisation of resources of the economy, both labour and capital. An excessive focus on the fiscal aspects of disinvestment leads to undesirable consequences.

Even partial privatisation, with the government retaining control, has yielded improved productivity. Disinvestment of profit making enterprises by public offering of shares is desirable insofar as it takes India towards a greater mass of companies w ...more
Answered by dharamender nebhnani, 07 Oct '09 11:42 pm

 
  
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2.

To a great extent ,yes.The dis invested companies r the example
Answered by Damodar Biswal, 07 Oct '09 02:52 pm

 
  
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