Question

take a case of public enterprise which is about to be privatised or has been recently privatised . Analyze the pros and cons of such an exercise undertaken by the government . ( the case of VSNL or BALCO can be taken up)


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Answer 1

Answer:

Pros:

Better management

Profit motive

Better customer service

New investments in VSNL (Now TATA Communications)

Decreased burden of management on Govt.

Cons:

Lack of service motive

Government no longer receives profits

May decrease quality of service due to greater profit incentives

Rise in the price for the service

Explanation:

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