Introduction: Define privatisation and give context of privatisation in India. Body: Write the objectives, Benefits and concerns of privatisation in India. Conclusion: Conclude giving a way forward. Privatisation means transfer of firms from the Public to Private Sector through the transfer of ownership, management and control. India adopted a mixed economy model, where the Public… Continue reading [Answered] How far, in your opinion, privatisation has been able to achieve its intended objectives?
What is the News? The government of India is set to approve several changes in the privatisation process for companies in non-strategic sectors. Background Recently, the Government of India has released a new ‘Public Sector Enterprise Policy’. The policy classifies public sector commercial enterprises into strategic and non-strategic sectors. In the strategic sectors, there would… Continue reading Centre set to rejig privatisation process for non-strategic sectors
Synopsis: Implications of the sale of Air India for the future of India’s public sector. Introduction Recently, the Tata Group emerged as the winning bidder for Air India, the debt-laden national carrier. Further, in this year’s Budget, the government unveiled a bold new disinvestment policy for even the strategic sectors. The government is also pursuing… Continue reading Will privatisation take off after the Air India sale?
Synopsis: Adopting policies that boost the market valuations of state-run companies will help government to keep the disinvestment momentum. Introduction After the successful disinvestment in Air India, many want the government to build on this and carry out more strategic disinvestment, i.e., sell more government companies, to the private sector. But that is a very… Continue reading India must keep the momentum of Air India’s privatization going
Synopsis: The government is looking to privatise the PSBs for strengthening the banking sector. But the Privatisation of PSBs is a complex one. Introduction Recently, the Finance Minister mentioned that India needs more banks to match the scale of the nation’s largest lender, the State Bank of India. This is because India (Asia’s third-largest economy) is… Continue reading Privatisation is far more difficult than consolidation
For 7PM Editorial Archives click HERE → Introduction Government has approved Tata Group’s Rs 18,000-crore bid for the state-owned carrier, Air India. The deal, which is expected to be completed by December-end, also includes sale of Air India Express and ground handling arm AISATS. Air India had a total debt of ₹61,562 crore as on August 31. Of this, Tata… Continue reading Privatisation of Air India – Explained, pointwise
Synopsis: Corporatization of OFB is the first step towards reforming it. India need to do much more. Introduction Ordnance Factory Board (OFB) which started during the British era has ceased to exist starting today. Read here: OFB Corporatisation” Approved by Cabinet How was the OFB corporatized? The corporatization of OFB has been recommended by the various… Continue reading Ordnance factories’ moment in history
Synopsis: The sale of giants like BPCL, BEML or SCI would undermine India’s “Atmanirbhar” goal. Privatisation compromises India’s sovereignty and economic freedom, threatening its energy security and strategic postion. Introduction Today, 28% of the world’s largest and most powerful economic entities are state-owned, dominated largely by the Chinese State-Owned Enterprises (SOEs). China today has 124… Continue reading Why India must strengthen its public sector