Explain the challenges of disinvestment programme.
Answers
Last few years United Progressive Alliance government has repeatedly set ambitious aims for disinvestment proceeds from public sector enterprises and missed those targets marvelously.
Inspite of the fact that fiscal deficit is high which predicts that revenue should be raised.
Depressed condition of markets and reduction of reasonable buyers means frequently government has to prevail its own companies for example LIC of India and state operated oil organizations to buy stakes in public sector units.
Faux disinvestment atleast.
Government's dilemma is understandable.
Fact is it's increasingly transparent without class of people for whom investment in equity is normal thing, selling stakes in public sector is fraught with danger.
Idea behind disinvestment is that major companies will be sold to large private investors and not serve to strengthen a half-formed oligarchy.
Here is the answer to the above question:
When it comes to the disinvestment program, there were many challenges and they include the following;
1. The available private companies will no accept the terms and conditions to take over the shares.
2. All the private companies only look forward to getting the profit from, and it turns out to be the biggest barrier for the disinvestment program