Business Environment, 4th Edition by Pearson

538 | Chapter 19

the healthy ones. Now the dilemma that is facing the government at this juncture is,

that while it will be able to sell all shares of the profit-making PSUs, it is going to be

left with the sick units only.

The Standing Committee on Public Enterprises (SCOPE) has, in 2004, argued

that the government’s disinvestment programme is totally unplanned and has,

not benefitted the PSUs. It is argued that the disinvestment exercise is merely a

budgetary, gap-filling mechanism in which neither the views nor the strengths of

any corporation are taken into account prior to the divesting of shares.

Desirability

Broadly speaking, there are two ...