disinvestment :: essays research papers

DISINVESTMENT OF PUBLIC SECTOR UNDERTAKINGS IN INDIA nowadays THE RUSSIAN economic MODEL OF DEVELOPMENT CONNOTED THROUGH THE RUSSIAN FUR DOES NOT EXIST.TODAY THE CHINESE ECONOMIC MODEL OF DEVELOPMENT CONNOTED THROUGH THE MAO eccentric DOES NOT EXIST.Margaret Thatcher disrobed them. The concept of the GOLDEN STRAIGHT JACKET is avowed, to whether it were the Democrats or the Republi nominates, the Conservatives or the Laborites, the BJP or the Congress.The concept of the golden straight jacket has been embraced by all(a) countries including India. It endeavors to shift the economic decision making from the organisation to the markets. The concept of Disinvestment existence its major tenet.The Nehruvian temples of economic growth, better known as the common Sector Undertakings were born as the outcome of the conscious insurance policy of the government to speed up industrialization of the country with a view to large-minded added impetus to economic growth as well as fall upon certain socio-economic goals.These undertakings account for of our GDP. They also account for 1/3 of our exports and establish made contributions to import substitution. Also government undertakings employ more than 70% of the workers employed in the organized sector.These undertakings have helped reduce imbalances in regional development and a few of them have earned reputation for chastity at international level.But the picture is not as flushed as it seems, rather the scene in most of the PSUs is precise chilling. According to figures upto March 99 losses incurred by 29 PSUs trebled within one year from approx. Rs.1050 crores to Rs. 3600 crores.The major reasons for the non perfor humannessce of the PSUs can be summarized asPolitical Interference, High Cost of Delay, Fear of Scams, decapitated Plants, Ineffective Management, Huge Inventories, Trade Unionism and Unutilized Capacities.A comprehensive policy on public sector was set out in the industrial Policy Statement of Ju ly 24, 1991 - the year when the country had to tide over an unusual economic crisis reflected in its internal and external finances. The steps adumbrated included a review of public sector investments to focus on strategic and requisite infrastructure enterprises and new procedures to tackle chronically sick and loss-making units.Rationality is least expected from an economist who is best defined as a man who tells you tomorrow why the things he predicted yesterday did not happen today.The plane section OF DISINVESTMENT has the following rationale Because of the current revenue expenditure on items such as interest payments, wages and salaries of Government employee and subsidiaries, the Government is left with precisely any surplus for capital expenditure on social and somatogenic infrastructure.