Volume : IV, Issue : V, May - 2014

Disinvestment: A route to the Economic development in Present scenario

Sharad Kumar Shukla

Abstract :

 The Government of India is following a policy of economic liberalization after 1991 and concept of disinvest –ment has been more or less accepted by at least all the parties whenever they are in Government. Disinvestment has supposed to be the tool in the hands of Government to improve the functioning and profitability of public sectorenterprises and also raise funds to mitigate its fiscal deficits and improve the efficiency of the public enterprises. In order to raise resources and encourage wide public participation, a part of the government share holding in the public sector, would be offered to mutual funds, financial institutes, and general public and employees. The goals of disinvestments are clearly identified and classified into short term and long term. Disinvestment may be undertaken to reduce or mitigate fiscal deficit, ing about a measure of economic stabilization or to improve efficiency in public enterprises through structural adjustments. it is in this context the PSUs have been demanding that a part of the disinvestments proceeds should be allowed to be retained by PSUs in order to help them upgrades their technology to become competitive.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Sharad Kumar Shukla Disinvestment: A route to the Economic development in Present scenario Indian Journal of Applied Research, Volume.4, Issue.5, May-2014

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