Volume : III, Issue : VIII, August - 2013

Disinvestment Policy in India: Progress and Challenges

Kiran Kumar, Chetan Kumar T M

Abstract :

In the nineties, India’s budgeting, fiscal deficits, and balance of payments problems kick started the government’s urge to unlock the huge investments chained in the state owned enterprises (SOEs). The major thrust for Disinvestment Policy in India came through the Industrial Policy Statement 1991.The policy stated that the government would disinvest part of their equities in selected PSEs. However it did not stake any cap or limit on the extent of disinvestment. It also did not restrict disinvestment to any class of investors. The main objective was to improve overall performance of the PSEs. In eighties the model of privatization/divestment was initiated by Margaret Thatcher in UK and implemented by other countries including Germany (Unified), and other socialist countries. The Four Ps of disinvestment are Policy, Promise, Prognosis and Performance. In recent past, we have been witnessing a lot of debate on the disinvestments scenario suggesting dynamic movement.  

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Kiran Kumar, Chetan Kumar T M Disinvestment Policy in India: Progress and Challenges Indian Journal of Applied Research, Vol.III, Issue.VIII August 2013

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