Assessment of Strategic Disinvestment strategies of CPSEs in India - Case Analysis of selected PSEs

EasyChair Preprint no. 2232

Abstract

In the post independence era, the Industrial Policy Resolutions of 1948 and 1956 demarcated the areas of operations of public sector and private sector. The public sector was promoted mainly to contribute to the core sectors of the economy and there were many other objectives for building up the public sector. This included building infrastructure for economic development to generate investable resources for development. Over the period of time, public sector enterprises (PSEs) spread over from coal, steel and oil at one end to hotel and other domains. However over a period of time many of the PSEs faced several problems and turned into losses and their financial performance started deteriorating. The government thought it appropriate to make them viable through disinvestment process. Though the initiatives of disinvestment were taken by the government long back but it was only after 2000, the disinvestment process was speeded up and systematized. It was expected that PSEs after disinvestment will be in a position to perform well and contribute to the economy and the growth process. However, their performance in the post disinvestment era posed many issues and challenges. This paper is an attempt to analyze the performance of selected PSEs in the disinvestment ear to understand the factors affecting their performance.

Keyphrases: Disinvestment, Financial Performance, Productivity, Profitability, Valuation

@Booklet{EasyChair:2232,
  author = {Vijay Kumar Choudhary and Kanhaiya Singh and Vandana Gupta},
  title = {Assessment of Strategic Disinvestment strategies of CPSEs in India - Case Analysis of selected PSEs},
  howpublished = {EasyChair Preprint no. 2232},

  year = {EasyChair, 2019}}