Disinvestment - The Road Ahead

Abstract

The lack of political consensus and adhocism in the policies pursued by successive governments have messed up the process of disinvestments. The issue of disinvestments is not merely related with shedding of government equity but also with thousands of workers who may have to bear the social cost of the process in the form of sacrificing their jobs. The money generated through the process should not be used to cover up the fiscal deficit but in creating social and industrial infrastructure. The need of the hour is to understand the fact that the issue of disinvestments acquires varied shades as we move across the companies; hence the policy makers should handle it on case to case basis.