Is disinvestment a good idea ?

[neerajchauhan]

yes it is a very good idea as some people believes that disinvestment would lead to unemployment. I don't know how that would really be possible because private companies are not Generators to perform work out of thin air, they need workers too.

Disinvestment would although make things more expensive because after all the main motive of any private business entity is profit making...

for example; one of the theory of increasing fuel prices is the lobbying done by Reliance because they cannot bear the losses incurred by selling fuel at a subsidized rate.However i think this too can be tackled by having autonomous bodies or markets which could control the pricing of the essential commodities or services although it'll be very difficult to control it when it comes to service.

:SugarwareZ-205:

 

[SANDY1.]

no because in future these psu will serve their true purpose of providing services
to the public when private enterprises will back off because they are not earning the desired profits

 

[Nataraj1984]

Definitely not a bad idea. But if the question is, "Is it a good Idea" lot of things need to be considered. Out of which the foremost thing is reason behind the decision.

For current disinvestmnent plans, the reason being quoted is to bring down the fiscal deficit to 5.5%. My arguement is is this the only way to bring the deficit down. Just for example if any country's deficit is far behind the control limit, will it disinvest all its state owned properties....

Have to pondered...right???

 

[jitenmazee]

I believe it is is good up to a specific level for the reason that it make huge funds & this fund could be use in social industry, financial assistance & can minimize fiscal deficit as an income source & create good corporate governance but up to a particular level.