What will be the effects of privatizing government own companies to our economy?
At the enterprise level, privatization has positive effects on incentives, profitability, operational efficiency, and consumer benefits in a relatively short time. Consumer benefits typically arise in the form of enhanced quality and availability of goods and services, increased range, and reduced prices (footnote 28).
When PSU banks will be Privatised?
The government has listed the Banking Laws (Amendment) Bill 2021, which will be taken up during the Winter Session of Parliament to privatise two public sector banks as part of the Rs 1.75 lakh crore disinvestment target in the current fiscal year.
What are the benefits of privatization of Public Sector Undertakings (PSUs)?
The PSUs in India are suffering from the problem of inefficiency and privatization would be the best tool to remove this inability. The privatization of PSUs will reduce the burden of the Government and will also help in generating financial resources.
Is the idea of privatization of many PSUs in India real?
Yes, the suggestions have started to reach the Government of India yet there has no step been taken towards this concern. It is obvious that the idea of privatization of many PSUs must not have been arisen instantly but may be the result of many surveys and researches conducted on the concern.
Does the temptation to privatise public sector enterprises stop with PSUs?
Further the temptation to privatise did not stop with PSUs. Contrary to the accepted rationale of privatisation, we have seen the government withdrawing from health and education sectors, leaving the citizen with almost no choice but to seek costly education and unaffordable healthcare offered by the private sector.
How can governments ensure the success of privatisation?
Any student of privatisation knows only too well that its success depends on the transparency of the process and the effectiveness of the regulators. While welcoming the private sector, governments should ensure a level playing-field with well-defined rules of the game.