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MEANING OF DISINVESTMENT

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Presentation on theme: "MEANING OF DISINVESTMENT"— Presentation transcript:

1 MEANING OF DISINVESTMENT
In general terms Disinvestment is simply selling the equity share invested by the government in Public Sector Enterprises (PSU).

2 Objectives of Disinvestment of PSU
Reduce the Fiscal deficit Introduce New Management Faster realization value Introduce Capital for the company Reduce Financial Burden on Government Improve Public Finances Introduce Competition with Market Discipline Encourage Wide Share in Ownership Depoliticize Essential Services

3 METHODS OF DISINVESTMENT
Transfer of Complete Management Partial Selling of Shares by Government

4 Current Disinvestment policy – The Salient Features
In all cases of disinvestment, the Government would retain at least 51% equity and the management control In any listed PSU in government shareholding is less than 90% than government reduce through FPO or Offer for Sale. Public Sector Undertakings are the wealth of the Nation and this wealth should rest in the hands of the people All cases of disinvestment are to decided on a case by case basis.

5 Disinvestments in various PSU

6 Problems associated with Disinvestment
Loss of Public Interest Fear of foreign control Issues with workers Policy adopted by the government. Multiple Control authorities Disinvestment process is not completely open and transparent.

7 Forthcoming Disinvestments - Government Approval Received
OIL & NATURAL GAS CORP.LTD.  STEEL AUTHORITY OF INDIA LTD. HINDUSTAN COPPER LTD. NBCC Ltd. BHARAT HEAVY ELECTRICALS LIMITED 

8 THANK YOU

9


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