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Disinvestment Policy of Indian Government & Its Impact

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Disinvestment Policy of Indian Government & Its Impact
Disinvestment Policy of India & Its Impact

Presented by

Karishma Vora- PG12072
Purva Kashikar- PG12074
Rahul Chawla- PG12076
Priyanka Mahapadi- PG12078
Priyanka Gund- PG12080

INDEX:

TOPIC | PAGE NO | Disinvestment * Meaning * 3 Ps of disinvestment | 4-5 | PSU * Meaning | 6 | Reasons for Disinvestment * Inefficiencies * Negative Rate of Return | 7 | Objectives of Disinvestment * To reduce the financial burden on government * To improve public finances * To introduce competition and market discipline * To find growth | 8 | Importance of Disinvestment * Utilisation of funds for: * Financing the increasing fiscal deficit * Financing large-scale infrastructure development * For investing in the economy to encourage spending | 9 | Approaches of Disinvestment * Majority * Minority * Complete Privatization | 10-11 | Past Disinvestment Policy | 12-15 | Current Disinvestment Policy * Salient features of the Policy * Government approved action plan for disinvestment in profit making government companies: | 16 | Process of Disinvestment * Organizational structure * Areas under each joint secretary | 17-20 | Disinvestment Procedure | 21 | NIF * Broad investment objectives * Salient Features * Fund managers * Corpus of NIF | 22-24 | Benefits of Disinvestment * For the government * For Market and Economy * For Tax Payers * For the Employees * For the PSU’s | 25-28 | Disadvantages of Disinvestment * Concentration of Wealth * Loss of Employment * Lower Value of Realisation | 29 | Problems in Disinvestment * Social * Political * Economic | 30-31 | Recent Disinvestment Cases * Hindustan Copper Limited (HCL) * National Mineral Development Corporation (NMDC) | 32-33 | Conclusion | 34 | Bibliography | 35 |

What is Disinvestment?

At the very basic level, disinvestment can be explained as follows:

* “Investment refers to the conversion of


Bibliography: * http://businesstoday.intoday.in/story/disinvestment-receipts-fiscal-deficit-under-control/1/189233.html * http://businesstoday.intoday.in/story/budget-2012-divestment/1/23058.html * www.google.co.in * www.wikipedia.org * http://www.ndtv.com/topic/disinvestment-in-psu * www.theeconomictimes.com- article dated 20th December, 2012 * http://www.thehindubusinessline.com/industry-and-economy/economy/limiting-fiscal-deficit-to-53-of-gdp-is-challenging/article4209782.ece * www.divest.nic.in/ * The Times of India article dated 27th December, 2012
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