Presentation by Andreas Schleicher Tackling the School Absenteeism Crisis 30 ...
Gmp Section B Macro Economics Disinvestment Report
1. Disinvestment : Is it necessary and useful in the current economic situation in India? Anshuman Jaiswal (G09051) Deepti Chand (G09055) Gaurav Piplani (G09059) Kaushik Chakraborty (G09063) GMP, XLRI Jamshedpur
2. Disinvestment implies that the government will sell part or whole of its holding in public sector enterprises. Privatization Vs Disinvestment. The transfer of ownership occurs when in an enterprise the dilution of government ownership is beyond 51 percent. What is Disinvestment? GMP, XLRI Jamshedpur
3. A historic overview Divestment of stake in central public sector units has netted Rs 53,400 Crore since 1991. GMP, XLRI Jamshedpur
6. Government’s stake in public sector enterprises to remain above 51% With the left parties out of the picture, UPA plans to roll forward its plan to disinvest. No privatisation of government-owned banks and insurance companies. Proposed a modest disinvestment proceeds of Rs 1,120 crore for FY 10. Disinvestment in current scenario GMP, XLRI Jamshedpur
9. Private ownership would result in a selfish motive of maximizing profit Vs social welfare. Disinvestment of PSUs might lead to mismanagement of material, natural and human resources. In crisis, public entities would absorb the shock and protect the interest of the nation. Mostly profit making firms are disinvested and eventually only sick firms will end up in government’s kitty Reasons for No Disinvestment GMP, XLRI Jamshedpur
10. Reasons for Disinvestment Improved Efficiency & Revenue Generation Measure to reduce fiscal deficit Management Indecision, Red tape and Political Interference Private sector success & Government’s lack of focus Global size & world class customer service. GMP, XLRI Jamshedpur
12. Who says there are no buyers of loss making companies? Why not just sell loss making and not the profitable ones? Why to keep Non strategic sector under Government control? Points to ponder GMP, XLRI Jamshedpur