Privatization of Public Enterprises : Trends and Issues
Privatization of Public Enterprises : Trends and Issues

Author: Dr. Mohd. Aijaz

Publisher: K.K. Publications

Published: 2022-01-09

Total Pages: 102

ISBN-13:

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Privatization of Public Enterprises: Trends and Issues This book presents a critical assessment of India's disinvestment exercise initiated as part of the larger economic reforms in 1991. The macro-economic crisis of the 1980s exposed the excessive expansion of Public Sector Enterprises (PSEs) which manifested a number of weaknesses in their performance. This domestic crisis was converted into an opportunity when a massive programme of disinvestment of PSEs was launched in a phased manner. A number of PSEs were privatized through the sale of equity to the public. The purpose of the reform was to limit their size and redefine their role to enhance productivity and efficiency. This study intends to review the functioning of the disinvestment drive on empirical grounds. To be precise, it examines to what extent the disinvestment of PSEs is successful on the parameter of financial efficiency, modernization, employment generation, regional imbalance, utilization of proceeds, and methods of privatization. The book provides insight for researchers and policymakers working on this current subject.

Public Sector Enterprises in India
Public Sector Enterprises in India

Author: P.K. Jain

Publisher: Springer

Published: 2014-06-05

Total Pages: 403

ISBN-13: 8132217624

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The book examines the various aspects of non-financial central public sector enterprises (PSEs) in India, for a period from 1986-87 to 2010-11. The analysis is based on all the key financial ratios; namely, profitability, efficiency, liquidity, leverage and productivity. Liberalization and globalization have caused competition in India and have lowered the profit margins. At the same time, Indian government has reduced subsidies and budgetary support for PSEs to curtail their own fiscal deficit. Strategic and economic reforms were also introduced in PSEs to make their operations commercially profitable so that they are not dependent on the government to meet their financial requirements on the one hand, and have their own earnings to finance their expansion/modernization requirements as well as their social obligations, on the other. To what extent, the PSEs have succeeded in this objective constitutes one major aspect of the present research work. The other equally important aspect examined is financial performance of the PSEs which have opted for disinvestment and have signed memorandum of understanding (MoU)/ self obligations. The Indian Government has desired the central PSEs to be profitable in their operations in post-liberation era of 1990s. For this purpose, two major instruments, namely, disinvestment and MoUs, were introduced. This book examines, in detail, financial performance of PSEs which had opted for disinvestment and have signed MoU. Based on analysis/ findings and literature on the subject, the book contains some concrete suggestions that would prove extremely helpful to Indian Government to further improve their financial performance. ​