Why is the government Privatising profitable PSUs?

In strategic sectors with more than 0 PSU’s, the government will privatize, merge or consolidate the PSU’s under holding companies in order to reduce wasteful administrative costs. Since financial year 1991-92 to 2017-18 the Government of India sold public assets totalling ₹3,47,439 Crore.

Is it good to Privatise PSU?

New Delhi: After Union Finance Minister Nirmala Sitharaman announced to privatise two public sector undertakings (PSUs0 and one insurance company, experts believe that this is a positive step and it will help the government to get money from the market.

Is privatisation of profit making PSEs justified Analyse?

Privatisation of profit-making PSEs will still bring in benefits of the efficient operation of the private sector through reduced costs. For example, Air India is marred with issues like poor punctuality, high staff-to-plane ratio, high operating costs and overall customer indifference.

Are PSU getting Privatised Quora?

In a big decision, Govt has now announced that all PSUs in non-strategic sectors will be privatized, while in the strategic sector, there will be only one to maximum 4 PSUs fully owned by Govt. Rest every PSU in India will be privatized.

Is selling PSU good Quora?

Public Sector Units are generally a drain on the public money. A large number of them are running in losses or are not earning sufficient profit. It is not the Government’s business to be in business.

What Is privatization the PSU’s that are making profits should be privatized Why?

A profit-making PSU should be privatised only if it can earn better revenues and thus higher profit if run more efficiently by the private sector. Privatisation may cause exploitation of workers in these units and also may have socially undesirable effects such as concentration of economic power.

Should public sector undertakings (PSUs) be privatized?

Nowadays a debate is going on that Public Sector Undertakings (PSUs) must be privatized as they are not performing, their employees are not efficient etc. Rajiv Kumar, Vice-Chairman of NITI Aayog believes that the new government should privatization of one PSU every week.

What should be the policy and yardstick for PSU privatisation?

The country needs to know the policy and yardstick for PSU privatisation. Driving every public sector employee into the precipice of uncertainty cannot beget the best outcomes. The short-term and long-term plan of disinvestment of PSUs, created by exchequers’ money, need to be shared with the nation.

Should the government sell off PSUs to improve public services?

The argument was the government could utilise the money gained by selling off PSUs to improve services in public goods like infrastructure, health and education. It was widely held in the nineties that the state needs to concentrate on these areas aimed at human resource development that would facilitate and accelerate economic growth.

Is it okay to sell a PSU if it is not profitable?

It is okay for a PSU even if it is not making profit. Instead of using corrective measures and recapitalization to restore business operations, you are selling it to meet revenue targets. It can’t be justified in anyway. Think, how will you feel, when one day you come to know that your company has become private.