Centre plans to give some strategic disinvestment powers to DPE

What is the news? The central government has decided to give some powers in the strategic disinvestment process to the Department of Public Enterprise (DPE). This department has been brought under the Ministry of finance. How does the current disinvestment process work? As per the current process, NITI Aayog identifies companies for disinvestment. This proposal… Continue reading Centre plans to give some strategic disinvestment powers to DPE

After selling the Maharajah

News: The gains from the sale of Air India would be incomplete if follow-up steps are not taken to reorganise the civil aviation ministry. Reforms of this ministry are long overdue, and the Air India sale should expedite such a decision. What does the Union civil aviation ministry do? The ministry is responsible for formulating… Continue reading After selling the Maharajah

Will privatisation take off after the Air India sale?

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?

India must keep the momentum of Air India’s privatization going

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

Air India sale opens up a brighter future for aviation

Synopsis:  Disinvestment of Air India will benefit Indian economy. Introduction Recently, the Government of India has successfully disinvested 100 per cent of its stake in Air India, 100 per cent in the low-cost airline Air India Express Ltd and 50 per cent in the Air India SATS Airport Services Private Ltd. The move reflects the… Continue reading Air India sale opens up a brighter future for aviation

Privatisation is far more difficult than consolidation

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

Privatisation of Air India – Explained, pointwise

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

Ordnance factories’ moment in history

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

Why India must strengthen its public sector

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

Power Finance Corp set to be India’s 11th Maharatna CPSE

What is the News? Power Finance Corp. Ltd(PFC) is set to become the 11th Maharatna Central Public Sector Enterprise (CPSE) with an inter-ministerial committee clearing the status. What is Maharatna Status? Maharatna Status was introduced for Central Public Sector Enterprises(CPSEs) in 2010 in order to empower mega CPSEs to expand their operations and emerge as… Continue reading Power Finance Corp set to be India’s 11th Maharatna CPSE