Disinvestment of Public Sector Enterprises in India
The founding fathers of our republic used the public sector as an essential and vibrant element in the building-up of India’s economy. One of the basic objectives of starting the public sector in India was to build infrastructure for economic development and rapid economic growth. Since their inception, public enterprises have played an important role in achieving the objective of economic growth with social justice. However economic compulsions, viz., deterioration of balance of payment position and increasing fiscal deficit led to the adoption of a new approach towards the public sector in 1991. Disinvestment of public sector undertakings (PSUs) was one of the policy measures adopted by the government of India for providing financial discipline and improving the performance of this sector. The aims of the disinvestment policy were: (i) raising of resources to meet fiscal deficit; (ii) encouraging wider public participation including that of workers; (iii) penetrating market discipline within public enterprises; and (iv) improving performance. This book deals with the origin, role, performance and problems of public sector enterprises and the policy adopted for the development of these enterprises since 1991. At the same time, the book also gives an account of Privatisation/Disinvestment policy, procedure, proceeds and performance of disinvested public sector enterprises in India. The Book will be useful to policy makers, pioneers, academicians, researchers, investors, post-graduate students and persons having interest in the study of privatisation/disinvestments of public sector enterprise.