A

Presentation on
Privatization

Presented By:-
Chaitali Sailor
Hemul Shah
Niharika Rana
 A
Presentation on
Privatization

Presented By:-
Chaitali Sailor
Hemul Shah
Niharika Rana
WHAT IS PRIVATIZATION?

Definition:-
“Privatization is the general process of involving the private sector in the
ownership or operation of public sector unit.”
 The concept of Privatization was firstly introduced in India by our late prime
minister Mr.Rajiv Gandhi.
 It means transfer of ownership or management or both of public enterprise
to private sector.
 It also includes the withdraw of state or government from any sector fully or
partilly.
 We can say that Privatization means expansion in the role of private sector in
the economic activities carried out in the country.
 It also means gradual increase in the share of private sector in the national
income, employment, export earning etc. .
Why Privatization?

Poor efficiency, unproductivity & corruption in PSO.

Unwillingness of the government to continuous with the
loss making units.
Lack of infrastructure in public sector unit.
Lack of sufficient technology in PSO.
Low investment in PSO.
Provision in the industrial policy 1991.
Ways of Privatization:-
There are basic 3 measure to determine ways of privatization.
1. Ownership Measure :-
 De-nationalization
 Joint venture
 Management BUY-out
2. Organization Measure:-
 leasing
 re-structuring
• Financial restructuring
• Basic re-structuring
3. Operational Measure
Benefits & Drawbacks of Privatization:-

•Benefits of Privatization:-

 Improvement in efficiency.
 Reduction in Government’s Burden.
 Repayment of the debt.
Drawbacks of Privatization:-

• Lack of Adequate Funds with the Private parties.

• Strong opposition from the bureaucracy & labor unions.
• Possibility of unemployment.
•
• High Prices.
THANK YOU