Privatization and Wealth Creation

  • Survey examines the realized efficiency gains from privatization in the Indian context and bolsters the case for aggressive disinvestment of CPSEs.
  • Strategic disinvestment of Government’s shareholding of 53.29 per cent in HPCL led to an increase of around Rs. 33,000 crore in national wealth.
  • Survey presents an analysis of the before-after performance of 11CPSEs which underwent strategic disinvestment from 1999-2000 to,2003-04:
    • Financial indicators such as net worth, net profit, return on assets (ROA), return on equity (ROE) etc of the privatized CPSEs, on an average, have improved significantly.
    • Privatized CPSEs have been able to generate more wealth from the same resources.
  • Survey suggests aggressive disinvestment ....
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