Privatisation 110509105916 Phpapp01

8/3/2019 Privatisation 110509105916 Phpapp01

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K.J. Somaiya Comprehensive college ofEducation, Training and Research

Topic- Privatization

Standard -10th

Roll no- 26

Year 2010 -2011

Presented by

Meenaz khair


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Meaning

Methods of privatizationAdvantages and disadvantages of

privatization


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Privatization was introduced

during the eighties by RajivGandhi

The government of P.V.

Narsimha Rao gave actual

speed by introducing the

New Industrial Policy


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Meaning of privatization

Privatization is the process of

participation of private sector in theownership and management of public

sector


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Out of 16 industries, 6 industries are not reservedfor private sector. They are

CigaretteAtomicenergy

Indian

railways


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Chemicalfertilizers

Arms andammunition

Hazardous

chemicals


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Methods of privatization

Sale of the entire entity : Thegovernment sells the entire public

sector unit to private sector.

Initial public offering :The

government issues shares to thepublic offering to reduce governmentstakes.


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Management control : Though not theprivate company the government transfersthe management control to the new companyto make it more accountable.

Sale to employees : Employees have thefirst choice to buy the shares of the shares

of public limited company when they areput for sale.


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Examples BSCS was privatized

today it is owned byReliance energy

Telephone companiesnow are owned by

private companies also.


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Hindustan and Bharatpetroleum planning to

be a part of Oman oilcompany to have agreat supply of oil to

India in lower price.


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Positive effects of

privatization. Better services to

the consumers

Use of updatedtechnology whichhelps to reducewastage


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Helps in infrastructure

development with the help oftaxes received frombusiness firms

Helps the government to

concentrate on socialproblem


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Negative effects of

privatization Investment in

industries of comfortand luxurious products

instead of necessaryproducts and problemof optimum use ofcapacity


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Aims at making profit

which adversely affectthe interest of thecommunity

Problem of

unemployment


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Market share of privatization isincreasing year by year.


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Does India need more

privatization? The central government owns public

sector units which have accumulated

losses of Rs.52,551 crore losses thatIndia can no longer afford. Also thatshareholders are getting less return

on their investment. So, India needsto private more industries.


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Governments role in

privatization. Government acts as a referee

protecting both the consumers and

the investors. Government protectsthe consumers from unwarrantedprices.


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Evaluation

Define privatization.

Give any two methods of

privatization?

According to you, is privatization

necessary for a country like India?


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Ans: Transformation of public sector into

private sector either partly or fully

Ans: Management control

Sale to employee

Ans: Yes, privatization is necessary for acountry like India


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Privatisation 110509105916 Phpapp01