ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Partial Divestiture and Performance of Indian Public Sector Enterprises

Global empirical studies of privatised firms show a significant improvement in their performance after privatisation. This is true in case of fully as well as partly privatised firms. What is the evidence for Indian divested enterprises in this regard? This paper attempts an analysis by empirically examining the impact of divestiture. The results indicate that in case of partial divestiture, where divested equity is thinly spread with the majority shareholding still with the government, there has been no improvement in terms of profitability and operational efficiency. The paper therefore endorses the government's current policy of strategic sale, where management control passes to the strategic partner.

Oil Deregulation: Losing Sight of Goals?

Rhetoric and even platitudes are necessary notes of any official policy statement. But usually the notes are the overtones of a song/symphony – not though in the government’s draft science policy statement. Drafted by a group of eminent scientists/science administrators and bureaucrats the policy, the third such statement to be issued since independence, is content to construct fetching word pictures without spelling out the processes which can reverse the steadily decreasing interest in science in the country. Even the implementation strategy document that accompanies the policy statement – an innovation, to be sure – fails to grapple with the real issues.
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