Disinvestment and Privatization of Central Public Sector Enterprises in India: Need and Progress

Archana R. Dholakia and Ravindra H. Dholakia ()
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Archana R. Dholakia: Gujarat University
Ravindra H. Dholakia: Former Professor, Indian Institute of Management

A chapter in Studies in International Economics and Finance, 2022, pp 217-234 from Springer

Abstract: Abstract The paper discusses the concept of disinvestment and privatization of the central non-departmental public sector enterprises (CPSE) and provides historical background of the divestment program of the Central Government in India. Its achievements and problems in raising additional resources to reduce fiscal stress since the beginning of the economic policy reforms in 1991 are briefly reviewed by considering four distinct phases: a. 1991–2004; b. 2004–2014; c. 2014–2019; and d. 2019–2024. Over these four phases, the divestment proceeds have been accelerating with the ones during the third phase being more than 2.5 times during the second phase. For the fourth phase, five Cs in India—CBI, CBDT, CVC, CAG, and Courts with significant presence of bureaucracy can create effective hurdles as they have done in the past to achieve targets of the divestment program. The paper concludes by pointing out the probable future efficiency gains since it is far easier in India for private to private transfer than for public to private transfer.

Keywords: Disinvestment of PSUs; Privatization in India; Disinvestment and Political Regimes; Exchange Traded Fund (ETF); Initial Public Offer (IPO) (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-16-7062-6_12

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DOI: 10.1007/978-981-16-7062-6_12

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