Disinvestmets

Cover Feature Disinvestment in everyday sector enterp raises V. Gangadhar Dr. M. Yadagiri The new economical constitution and economic reforms in India have given rise to significant focus for disinvestments or privatization of Public Enterprises. The basic object of this process is to mitigate the bud convey deficit of the government on the one side and reduction of the burden of financing public enterprises through budgetary support on the other. The politics of India has taken several measures for disinvestment and had setup an administrative machinery to implement its disinvestments programme. This disinvestment process involves military rank of assets, selecting appropriate modalities, inviting bids and deciding appropriately based on the bids. The disinvestment in practice of the Central Government is not encouraging. The amount of proceeds realized is only 40.9% of the target of the disinvestments for the decade of 1991-2001. The performance of the disinvestments policy in relation to budget deficit and cracking receipt is also not much significant. If government decides to dispose off-key 23 selected listed public sector enterprises for a 10% and 20% of equity can realize Rs.8,060.04 crores and 16,120.08 crores respectively.

The overall performance of the Government with regard to disinvestment is not much appreciable. he public sector is at the cross roads. A sector which was to achieve absolute heights and was taught to be the correct path for Indias economic growth, sound from independence stands today condemned not only by those whose evaluate paid money went into its expansion exactly also by our makers. A sector which characterised as over invested but gives poor returns, over employed but yields low productivity, excessive capital equipment but under utilised capacity, excessive controls but bring down efficiency, abandoned assets but lack of resources and lots of talent but under utilised. A sector which Government wants get unblock off 1. The New Economic Policy initiated... If you want to get a full essay, order it on our website: Orderessay

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