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Current state of affairs (1 slide)
And the benefits (1 slide)
Concerns and how are we addressing it– (1slide)
Examples (1 slide)
Whats the urgency?
Privatisation of the public sector
undertakings by selling off part of the
equity of PSUs to the public is known
as disinvestment.

The purpose of the
sale, according to the government, was
mainly to improve financial discipline
and facilitate modernisation. It was also
envisaged that private capital and
managerial capabilities could be
effectively utilised to improve the
performance of the PSUs.
The government envisaged that privatisation
could provide strong impetus to the
inflow of FDI

Examples of Disinvestment
Such changes would lead to an increase in the operational efficiency and the market value of the PSUs
The assumption of higher efficiency, better / ethical management practices and better monitoring by the private shareholders in the case of the private sector � all of which supposedly underlie the disinvestment rationale
EMPLOYEES' ISSUES
A general fear among the employees at the time of disinvestment is that they may be retrenched or their pay scales and services conditions may be adversely affected. Global experience shows that if the privatised companies grow rapidly, labour re-structuring may not be required. A number of protections are available to the employees under various labour laws. These labour laws are applicable to the company irrespective of whether it is in the Public Sector or in the Private Sector. Besides this, employee protection can be ensured by incorporating suitable clauses in the Shareholders' Agreement.

1
Lagan Jute Machinery Company Limited (LJMC), (subsidiary of Bharat Bhari Udyog Nigam Ltd. hereinafter referred to BBUNL)
2
Modern Food Industries Limited (MFIL)
3
Bharat Aluminium Company Limited (BALCO)
4
CMC Ltd. (CMC)
5
HTL Ltd. (HTL)
6
Videsh Sanchar Nigam Limited (VSNL)
7
Paradeep Phosphates Limited (PPL)
8
Jessop...