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Disinvestment of shares of a select set of public sector enterprises.

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Disinvestment involves the sale of the equity shares to the private sector and the public. The objective was to raise resources and encourage wider participation of the general public and workers in the ownership of these enterprises. The government had taken a decision to withdraw from the industrial sector and reduce its equity in all undertakings. It was expected thatDisinvestment involves the sale of the equity shares to the private sector and the public. The objective was to raise resources and encourage wider participation of the general public and workers in the ownership of these enterprises. The government had taken a decision to withdraw from the industrial sector and reduce its equity in all undertakings. It was expected that this would lead to improving managerial performance and ensuring financial discipline. But there remains a lot to be done in this area. The primary objectives of privatising public sector enterprises are: • Releasing the large amount of public resources locked up in nonstrategic Public Sector Enterprises (PSEs), so that they may be utilised on other social priority areas such as basic health, family welfare and primary education. • Reducing the huge amount of public debt and interest burden; • Transferring the commercial risk to the private sector so that the funds are invested in able projects; • Freeing these enterprises from government control and introduction of corporate governance; and • In many areas where the publicthis would lead to improving managerial performance and ensuring financial discipline. But there remains a lot to be done in this area. The primary objectives of privatising public sector enterprises are: • Releasing the large amount of public resources locked up in nonstrategic Public Sector Enterprises (PSEs), so that they may be utilised on other social priority areas such as basic health, family welfare and primary education. • Reducing the huge amount of public debt and interest burden; • Transferring the commercial risk to the private sector so that the funds are invested in able projects; • Freeing these enterprises from government control and introduction of corporate governance; and • In many areas where the public sector had a  monopoly, for example, telecom sector the consumers have benefitted by more choices, lower prices and better quality of products and services.sector had a  monopoly, for example, telecom sector the consumers have benefitted by more choices, lower prices and better quality of products and services.

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