ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

disinvestmentSubscribe to disinvestment

Is Disinvestment of Air India Appropriate?

An analysis of Air India’s financials reveals that the national carrier is on the path to profitability. Strategic disinvestment at this time will prove to be suboptimal. It is shown that debt obligations of the carrier can be serviced, given its improving performance. The airline’s revenues also entail large amounts of foreign exchange inflows. With global crude oil prices expected to remain subdued, strategic disinvestment of Air India at this juncture is not desirable.

Partial Divestiture and Performance of Indian Public Sector Enterprises

Global empirical studies of privatised firms show a significant improvement in their performance after privatisation. This is true in case of fully as well as partly privatised firms. What is the evidence for Indian divested enterprises in this regard? This paper attempts an analysis by empirically examining the impact of divestiture. The results indicate that in case of partial divestiture, where divested equity is thinly spread with the majority shareholding still with the government, there has been no improvement in terms of profitability and operational efficiency. The paper therefore endorses the government's current policy of strategic sale, where management control passes to the strategic partner.

Steel Industry : Will the Good Times Last?

Will the Good Times Last? After nine years of drift, a revival deal for Indian Iron and Steel Co (Iisco) may finally be in the offing. The rehabilitation package for SAIL

Calcutta Diary

If disinvestment boils down to a network of arrangements which enables those close to the centre of power to make mindboggling profit on their money, while the rest of the species are condemned to a paltry profit, none amongst the latter will be agreeable to graze in the village common any more; about everyone who has the animal instinct implanted in him or her will try to cultivate the appropriate contacts.

Privatisation: Gains to Taxpayers - and Employees

The policy of the government on disinvestment has evolved over a period of 10 years. It started with selling of minority shares in 1991-92 and continues today with emphasis on strategic sale. The implementation of the present policy has shown the tremendous benefits of privatisation to the taxpayers, the economy, the stock-market and employees. This paper analyses these benefits and tries to allay the fear of the unknown amongst the various stakeholders of the public sector.

Pages

Back to Top