4.18.24 Movement Legacies, Reflection, and Review.pptx
Public And Private Sector In India
1. Public and Private Sector in India SUNEEL GUPTA ASSOCIATE PROFESSOR GHS-IMR,KANPUR
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3. Objective 1. To help in rapid growth and industrialization and create necessary infrastructure for economic development. 2. Promote redistribution of income & wealth 3.Create employment opportunities 4.Promote regional balance development 5. Promote import substitution save and earn foreign exchange for country. 6. Basic Infrastructure (STC, Railways, SAIL)
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7. The Privatization movement The move towards privatization has gained momentum since 70’s. The following are usually mentioned reasons 1 The emergence of conservative government in principal industrial countries 2 The emergence of multinational entities 3 Technological changes
8. 4 Emergence of local capital market and entrepreneurship 5 Dissatisfaction with performance of public sector ( 1960’s &1970’s saw emergence of literature pointing out the inefficiency of Import substitution policies and gave rise to question that why government Should intervene in the market place when it does not have any information about market players)
9. Reason for Indian Privatization 1. Crippling Budget deficit 2. Spectacular growth by economies of Korea, Taiwan, Malaysia in private sector 3. Galloping cost of government intervention I trade and industry & procedural difficulty 4. Collapse of USSR& communist government in eastern Europe
10. 5. Changes in China 6. Emergence of professional management 7. IMF & World Bank extended arm to capitalism 8.Gulf crisis 9.Lack of demand in economy 10.Integration of world trade 11. Developed local capital market and Financing Institution
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14. iv) Lack of proper preparation of enterprise for privatization or divestiture eg. Accounting and auditing , treatment of losses, social and environmental safety net (v) Insufficient transparency and flexibility in term of the method of privatization, balancing, ownership, and control ( corporate governance)
15. (vi) Vested interest of manager, employees and customer (vii) Lack of appropriate legal frame work (eg. Property right, foreign ownershipbankruptcy law ) (viii) Underdeveloped capital markets
20. DISINVESTMENT PROCEDURE GOI CARRIES DISINVESMENT IN ACCORDANCE WITH PRESCRIBED PROCEDURE TO ENSURE TRANSPERENCY PROPOSAL OF DISINVESTMENT IS BASED (OF PSU) RECOMMENDATION OF DISIN. COMMOSSION CONSIDERATION OF CCD (CABINET COMMTTE.ON DISINV.) CCD CLEAR THE PROPOSAL & SELECTION OF ADVISOR IS DONE THROUGH COMPETITIVE BIDDING
21. ADVISOR ASSIST IN ADVERTISEMENT IN NEWSPAPER INVITING EOI ADVISOR PREPARE INFORMATION MEMORANDOM WITH PSU &SHORTLIST THE BIDDER ( GOI+ Rep of PSU+ BIDDER) THE FINAL AGREEMENT ARE THEN VETTED BY MIN. OF LAW & APPROVED BY GOVT. THE BIDS ARE EXAMINED & ANALYZED BY IMG & ITS RECOMMENDATION ARE PLACED BEFORE CCD FOR FINAL APPROVAL AFTER ALL TRANSACTION IS COMPLETE CAG EVALUATES FOR PLACING IN THE PARLIAMENT & RELESEING TO PUBLIC