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Disinvestment:-The withdrawal of capital

from a country or corporation

Disinvestment is called partialprivatization.

Disinvestment process leads only to

dilution of ownership and not transfer of

full ownership.

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Offer for sale to Public at fixed price :

Strategic sale:

International offering: Asset Sale and Winding up:

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Raising resources

Restructuring of public enterprises

Rehabilitation of personnel Raising productive efficiency

Benefit to customers

Eliminate political interference Retiring public debts

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Wrong assumption

Low pricing during previous disinvestments

Capital receipts used for revenue expenditure Replacing public monopoly with private

monopoly

Workers interest

Only to finance budget deficit.

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Disinvestment in India has never been anattractive idea .

The fact that only in 3 of the 13 yearsbudgetary targets were met show theineffective implementation of this

process by the government.

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