Sector Units (PSUs) are very important in the Indian economy. PSUs account for 22% of India’s GDP‚ 6 % of employment in the organized sector and 20 % of direct and indirect taxes. PSUs help in the critical functions of promoting the socio-economic objectives of the Government and letting the government have a say in the market trends‚ it helps the government in ensuring stability in prices of key products and commodities. The root cause for the present scenario where the PSUs are in losses and the government
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Disinvestment 1) What Does Disinvestment Mean? Ans) The action of an organization or government selling or liquidating an asset or subsidiary. Also known as "divestiture". OR A reduction in capital expenditure‚ or the decision of a company not to replenish depleted capital goods. 2) Why disinvestment in India? In India for almost four decades the country was pursuing a path of development in which public sector was expected to be the engine of growth. However‚ the public sector had overgrown
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of India for disinvestment seeks to promote administrative simplicity and speed of decision-making without compromising on transparency and fair play. The process is as follows: · Proposals for disinvestments in any PSU‚ based on the recommendations of the Disinvestment Commission or in accordance with the declared Disinvestment Policy of the Government‚ are placed for consideration of the Cabinet Committee on Disinvestment (CCD). · After CCD clears the disinvestment proposal‚ selection
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Minority Disinvestment A minority disinvestment is one such that‚ at the end of it‚ the government retains a majority stake in the company‚ typically greater than 51%‚ thus ensuring management control. Historically‚ minority stakes have been either auctioned off to institutions (financial) or offloaded to the public by way of an Offer for Sale. The present government has made a policy statement that all disinvestments would only be minority disinvestments via Public Offers. Examples of minority
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Benefits of DisinvestmentSome overall benefits of Disinvestment‚ irrespective of the approach used are as follows: For the Government 1. | Raising valuable resources for the government‚ which could be used to bridge the fiscal deficit for one‚ but also for various developmental projects in key areas such as infrastructure. The Financial Times (20th May 2009) quotes a report brought out by the French securities firm CLSA to state: “A reduction in shareholding to hypothetically 51% across all the
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A Case study on: Disinvestment of Public Sector Undertakings in India - An Impact Study By Pankaj Kumar Enrolment No: 10810041 MBA Batch 2010 – 12 DoMS IIT Roorkee Referenced from: Indian Journal of Finance August 2010 Authors: Dr. M.K. Ramakrishnan and Sandhya R. Introduction: In a mixed economy like India‚ historically the public sector had been assigned an important role. However‚ in the year 1991 the national economic policy underwent a radical transformation. The new policy
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Balco - The Disinvestment Story: Introduction |In February 2001‚ the Government of India (GoI) struck its first |[pic][pic] | |disinvestment deal in the fiscal 2000-01. It approved the sale of its 51% | | |stake in aluminium major‚ Bharat Aluminium Co Ltd (Balco) to Sterlite | | |Industries Ltd. (SIL)‚ for Rs. 551.5 crores. Balco was
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DISINVESTMENT – BOON OR BANE INTRODUCTION 1. Public enterprises are neither new nor unique to India. In good old days‚ Kautilya in his ‘Arthasastra’ talked of a public sector. A person was made incharge of salt manufacture and fixing its price. Similarily there were people made responsible for mining‚ coinage and gold‚ all in public sector. Nowadays there is hardly any country that is not engaged actively and directly in the management of economic and industrial enterprises. Various names
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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
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with such quality and expertise that campus departments gain a competitive advantage from our collaborative efforts to make Virginia Tech a great place to work. HR Strategic Plan Goals and Objectives Goal One: Promote and enhance our competitive total rewards package to recruit and retain top talent. Objectives: Create a total rewards message to educate HR partners‚ hiring managers‚ and recruits on the total value of the Virginia Tech employment package Work closely with management to reinforce
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