International Financial Management: An Analytical Framework

CHAPTER 23

Privatization and Disinvestment of PSUs

CHAPTER OUTLINE

• Public Sector Enterprises (PSEs)—The Necessity

• A Decade of Performance

• Concept, Meaning, and Objectives of Privatization

• Disinvestment Strategies

• The Board for Reconstruction of Public Sector Enterprises (BRPSE)

• The New Disinvestment Policy and Programme

• Case

• Summary

• Key Words

• Questions

• References

PUBLIC SECTOR ENTERPRISES (PSEs)—THE NECESSITY

The formation of public sector enterprises (PSEs) in India was essential during the early 1950s. There were various problems confronting the country that needed a solution through a systematic and planned approach. India was basically an agrarian economy with a weak industrial base, low level of savings, inadequate ...