How the share is affected by divesting of public sector units?
Answers
Disinvestment in Public sector units in India, is process of public asset sales by President of India on behalf of Government of India, directly (offer for sale to public) or indirectly (bidding process) in capitalized market. The Public Enterprises Survey (2015-16), brought out by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India on the performance of Central Public Sector Enterprises was placed in both the Houses of Parliament on 21 March 2017. There were 331 CPSEs in 2017-18, out of which 257 were in operation. Rest (74) of the CPSEs were under construction. [1]
As in need of Economic Liberalism and Infrastructure development, in Union Budget of India Total Expenditure of Government of India increased from ₹ 1,13,422 crore (1991-92)
[2] to ₹ 21,46,735 Crore(2017-18) [3]. To raise the funds partially for these Expenditures and also to minimize fiscal deficits in union budgets, Indian Government started divestment in public sector undertakings. Conceding to demands of privatization and with tough resistance from labour unions, government of India is slowly divesting from PSUs. The below table provides the data for divestment which started from 1991(Barring 2 small units CMC Limited and Patherele Concrete).
Major divestment steps were taken in past by BJP -led NDA government (1999-2004), made four strategic disinvestment's - in Bharat Aluminium Company (BALCO) and Hindustan Zinc [4] (both to Sterlite Industries), Indian Petrochemicals Corporation Limited[5] (to Reliance Industries) and VSNL [6] (to the Tata group), While track record and future of these companies were good. [7][8][9] BJP led NDA Government (1999-2004) has also been criticized for divestment of IPCL , in which Reliance industries bid very high as compared to other competitors. [10]
Again in starting from 2014 to 2018 BJP led NDA government divested total ₹ 1,94,646 crore [11], which also includes minority and majority stake sale of most profitable Public sector undertaking companies, like ONGC- HPCL deal[12] worth ₹ 36,915 crore. in budgetary announcement of financial year 2017-18 The Finance Minister noted that the government initiated strategic disinvestment in 24 PSUs, including Air India, this fiscal. This would be the first year when the government is on course to hit the divestment target. [13]
Answer:
Disinvestment in Public sector units in India, is process of public asset sales by President of India on behalf of Government of India, directly (offer for sale to public) or indirectly (bidding process) in capitalized market. The Public Enterprises Survey (2015-16), brought out by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India on the performance of Central Public Sector Enterprises was placed in both the Houses of Parliament on 21 March 2017. There were 331 CPSEs in 2017-18, out of which 257 were in operation. Rest (74) of the CPSEs were under construction. [1]
As in need of Economic Liberalism and Infrastructure development, in Union Budget of India Total Expenditure of Government of India increased from ₹ 1,13,422 crore (1991-92)
[2] to ₹ 21,46,735 Crore(2017-18) [3]. To raise the funds partially for these Expenditures and also to minimize fiscal deficits in union budgets, Indian Government started divestment in public sector undertakings. Conceding to demands of privatization and with tough resistance from labour unions, government of India is slowly divesting from PSUs. The below table provides the data for divestment which started from 1991(Barring 2 small units CMC Limited and Patherele Concrete).
Major divestment steps were taken in past by BJP -led NDA government (1999-2004), made four strategic disinvestment's - in Bharat Aluminium Company (BALCO) and Hindustan Zinc [4] (both to Sterlite Industries), Indian Petrochemicals Corporation Limited[5] (to Reliance Industries) and VSNL [6] (to the Tata group), While track record and future of these companies were good. [7][8][9] BJP led NDA Government (1999-2004) has also been criticized for divestment of IPCL , in which Reliance industries bid very high as compared to other competitors. [10]
Again in starting from 2014 to 2018 BJP led NDA government divested total ₹ 1,94,646 crore [11], which also includes minority and majority stake sale of most profitable Public sector undertaking companies, like ONGC- HPCL deal[12] worth ₹ 36,915 crore. in budgetary announcement of financial year 2017-18 The Finance Minister noted that the government initiated strategic disinvestment in 24 PSUs, including Air India, this fiscal. This would be the first year when the government is on course to hit the divestment target. [13]