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

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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.

Russia: Oil and Politics

Under Vladimir Putin Russia has followed an aggressive energy policy enhancing the contribution of the oil and gas industry in the domestic economy. But as private companies gain dominance through mergers and foreign collaborations, a conflict of interest may emerge between the state and oil barons. Russia has become a major player in the world energy sector and has used oil as a weapon to achieve its foreign policy objectives through energy pipelines.
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