Enumerate the demerits of privatization of education
Answers
Demerits of Privatisation
1. The amount raised through disinvestment from 1991-2001 was Rs. 2051 crores per year which are too meager. Further, the way money released by disinvestment is being used, remaining undisclosed.
2. The loss of PSU’s is rising. It was 9305 crore in 1998 and 10060 crores in 2000.
3. This is welcome but disinvestment of profit-making public sector units will rob the government of good returns. Further, if a department of disinvestment wants to get away with commercial risks, why should it retain equity in disinvested PSUs, e.g. Balco (49%), Modern Foods (26%) etc.
4. The growth in the social sector is not in any way hindered by non-availability of manpower.
5. This is true but only when the govt, ensures that the market system regulates and disciplines privatized firms taking care of the public’s interest.
6. Privatization programme is generally not been affected through the public sales of shares. Earlier, the sale of shares (1991-96) attracted the employees to a limited extent and was not friendly to small investors and employees.
7. In most cases, shares of disinvested PSUs are by and large in the hands of institutions with little floating stock. The present policy of privatization through the strategic partner route would also not achieve these objectives.
8. Hindustan Lever has categorically stated that it has no plans for any capital infusion in Modern food industries acquired by it in January 2002. The supporter of disinvestment had thought that taxpayers money would be saved through private sector investment.
9. No monopoly is good. Only fair and full competition can bring relief to consumers.
Hopes it helps you..
Mark it as brainliest..