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In India for almost four decades the country was pursuing a path of
development in which public sector was expected to be the engine of growth.
However, the public sector had overgrown itself and their shortcomings started manifesting in the shape of low capacity utilization and low efficiency due to over manning and poor work ethics, over
capitalization due to substantial time and cost overruns, inability to innovate, take quick and timely decisions, large interference in decision making process etc.
The
Government started to deregulate the areas of its operation and subsequently, the disinvestment in Public Sector Enterprises
(PSEs) was announced. The process of deregulation was aimed at enlarging competition and allowing new firms to enter the markets.
The market was thus opened up to domestic entrepreneurs / industrialists and norms for entry of foreign capital were
liberalized.
Due
to the current revenue expenditure on items such as interest payments, wages and salaries of Government employees and subsidies, the Government is left with hardly any surplus for capital expenditure on social and physical infrastructure.
While the Government would like to spend on basic education, primary
health and family welfare, large amount of resources are blocked in several non-strategic sectors such as hotels, trading companies, consultancy companies, textile companies, chemical and pharmaceuticals companies, consumer goods companies etc.
Additionally, the continued existence of the PSEs is forcing the Government to commit further resources for the sustenance of many non-viable
PSEs. The Government continues to expose the taxpayers' money to risk, which it can readily avoid.
To top it all, there is a huge amount of debt overhang, which needs to be serviced and reduced before money is available to invest in infrastructure.
All this makes Disinvestment of the Government stake in the PSEs absolutely imperative.
"While the case for economic reforms may take good note of the diagnosis that India has too much government interference in some fields, it ignores the fact that India also has insufficient and ineffective government activity in many other fields, including basic education, health care, social security, land reforms and the promotion of social change.
This inertia, too, contributes to the persistence of widespread deprivation, economic stagnation and social
inequality."
- Amartya Sen & Jean Dreze
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Scale
to Next Economic Level - by
Aravind Sitaraman
Before proceeding to south India on a major documentary assignment as cameraman with my boss N V K Murthy, the producer (Newsreel) told me a month before February 1968, to arrange an exclusive interview coverage on Sir C V Raman during our stay . . . . (Getting Sabash From A Short-Tempered Scientist , Deccan Herald, Editorial, The Deccan Herald, Nov 07, 2007)
Ezeego1.com, an online travel bazaar in association with Air Deccan has come up with the “Ticket pe Ticket” offer. On booking an Air Deccan ticket with Ezeego1, you are entitled to get a “second Air Deccan air ticket free,” sa y the organisers. (Holiday Offers, Hindu, Correspondent or Reporter, Nov 03, 2007)
Ezeego1.com, an online travel bazaar in association with Air Deccan has come up with the “Ticket pe Ticket” offer. On booking an Air Deccan ticket with Ezeego1, you are entitled to get a “second Air Deccan air ticket free,” sa y the organisers. (Holiday Offers, Hindu, Correspondent or Reporter, Oct 29, 2007)
Oil and Natural Gas Corp (ONGC), which is under attack from the petroleum ministry and the directorate of hydrocarbons (DGH) for production decline of onshore assets and slow pace monetising marginal fields, on Wednesday indicated that it would . . . . (Ongc To Start Peak Kg Gas Production From 2012-13, Indian Express, Correspondent or Reporter, Oct 25, 2007)
“SUPERB interdisciplinary technical achievement … elegant renewal of one of the city’s finest Victorian buildings.” (Award For University Hall, Frontline, LYLA BAVADAM, Oct 24, 2007)
There are times when a story says everything you need to say, where comment or analysis add nothing, and this is one of them. (No Change, Just Teasing, Telegraph, Correspondent or Reporter, Oct 22, 2007)
It’s usually retired politicians who hit the lecture circuit. But Prime Minister Manmohan Singh has been giving - on request from his Nigerian hosts when he went visiting - lessons on how to manage an economy to top Nigerian officials. (Professor Pm, Times of India, Editorial, The Times of India, Oct 19, 2007)
It began with a bang when Prime Minister Manmohan Singh made it clear that the government had bargained hard to obtain a significant nuclear deal that was favourable to India’s interests, and would stand or fall by it. (Government Blinks, Times of India, Editorial, The Times of India, Oct 15, 2007)
It is almost inevitable that modern sport with its high stakes would be vulnerable to extraneous subversive influences. (Can Of Worms, Asian Age, Editorial, The Asian Age, Oct 15, 2007)
We were staying in a resort near the Golf Club in Mysore. At six in the morning, I decided to go for my morning constitutional. The road wound its way to the little hills beyond. The world seemed deserted. (Morning Walk , Deccan Herald, Editorial, The Deccan Herald, Oct 06, 2007)
Field Marshal K.M. Cariappa’s son has come up with an insightful biography of his father (To A Father Extraordinary, Hindu, Humra Quraishi, Oct 03, 2007)
In trademark commando style, General Musharraf stated he would give up his army post only after, and not before, he is re-elected president. (South Asia's New Czars, Times of India, SWAGATO GANGULY, Oct 01, 2007)
Field Marshal K.M. Cariappa’s son has come up with an insightful biography of his father (To A Father Extraordinary, Hindu, Correspondent or Reporter, Oct 01, 2007)
This is a son’s tribute to an extraordinary father. Titled “Field Marshal K.M. Cariappa”, it is a biography on this illustrious army chief written by his son Air Marshal K.C. Cariappa (Retd) and published by Niyogi Books. (To A Father Extraordinary, Hindu, Correspondent or Reporter, Sep 27, 2007)
COME August, the green and white standard is unfurled everywhere; it adorns everyone and everything from newscasters on television to cars, public buildings and private houses.
(Furling The Flag , Dawn, Editorial, Dawn, Sep 17, 2007)
A sigh of relief over fishermen’s return (Tsunami Warning Creates A Flutter In Vizag , Hindu, Correspondent or Reporter, Sep 13, 2007)
As if insatiate with the rise of India's capital markets to tenth position globally, Securities and Exchange Board of India on Sunday favoured introducing more products for deepening of markets aimed at investors' protection.
(Sebi Favours More Products To Deepen Mkt, Pioneer, Correspondent or Reporter, Sep 10, 2007)
As you sit gazing enthralled at the swollen Chaliyar river near Kozhikode, you discover anew the many simple pleasures of life. (Riverine Reverie, Hindu, Correspondent or Reporter, Sep 03, 2007)
The morning of June 1975 dawned routinely, but it was a dawn with a big difference. (The Four That Got Away, Tribune, Bhai Mahavir, Aug 27, 2007)
The district and sessions court in Jodhpur turned down actor Salman Khans appeal against his conviction in Chinkara poaching case on Friday thus upholding the five-year jail term awarded to him by a lower court. (Salman To Surrender On Monday , Deccan Herald, Correspondent or Reporter, Aug 25, 2007)
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