PRIVATISATION

Presentaion by : Soumen Chatterjee

K V Bamangachi

What is Privatisation?

• Privatisation mean : -. Privatisation is transfer of Partial or full ownership and management control of public enterprises to the private sector.

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Why India need privatisation?�

• Indian need privatisation because public sector enterprises were not performing good, so govt. decided introduction of Privatisation in PSUs.

What is meant by Navratnas ?�

• Navratnas are those profit making enterprises of govt. of India. These are: -
• 1. IOC
• 2.BPCL
• 3. ONGC
• 4. SAIL
• 5. BHEL
• 6. IPCL
• 7. VSNL
• 8. NTPC
• 9. HPCL

What are the Maharatna of PSUs?

In 2009 government gave MAHARATNA status to some PSUs

1. ICL
2. IOC
3. NTPC
4. ONGC
5. SAIL
6. BHEL
7. GAIL

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POSITIVE IMPACT OF PRIVATSATION

• ) Improve the efficiency of management: Privatisation was introduce to improve the efficiency of PSUs. , because PSUs were not doing good performance, with the introduction of Privatization performance of PSUs improved.
• (ii)Increase in the foreign direct investment: - Govt. introduce Privatisation in the PSUs because direct investments create funds to improve the working condition of PSUs.
• Reduction of deficit: public sectors under taking are not performing well and facing financial crises. Privatisation reduce their deficit.

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NEGATIVE IMPACT OF PRIVATSATION

• Privatisation have some positive impact but some extent it has some negative impact also, these are the following:
• Neglect of social interest: Private companies are only interested their profits and they ignored social welfare.
• High price goods: PSUs producing goods and services at very low rate or not earning very high profit, but on the other hand Private company’s products are very costly.
• Not achieving the object of full employment: Government introduce Privatisation to reduce unemployment in the country, but condition of unemployment more worst now.
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Disinvestment

PSU by selling off part of the equity of PSU to public.This process is known as disinvestment.

Thanks