{"id":226501,"date":"2023-02-14T10:46:10","date_gmt":"2023-02-14T05:16:10","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=226501"},"modified":"2023-02-14T10:46:10","modified_gmt":"2023-02-14T05:16:10","slug":"answered-do-you-think-the-governments-disinvestment-policy-has-achieved-its-intended-objectives-give-justifications-for-your-arguments","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-do-you-think-the-governments-disinvestment-policy-has-achieved-its-intended-objectives-give-justifications-for-your-arguments\/","title":{"rendered":"[Answered] Do you think, the government\u2019s disinvestment policy has achieved its intended objectives? Give justifications for your arguments."},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<td width=\"616\"><strong>Introduction:<\/strong> Contextual introduction.<br \/>\n<strong>Body:\u00a0<\/strong>Explain some achievements of the Disinvestment policy.\u00a0\u00a0Also write some challenges.<br \/>\n<strong>Conclusion<\/strong>: Write a way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Disinvestment is when the <strong>government sells its assets or a subsidiary<\/strong>, such as a Central or State public sector enterprise. Department of Investment and Public Asset Management (DIPAM) acts <strong>as the nodal agency <\/strong>for disinvestment<strong>. <\/strong>The main objectives of disinvestment in India are to <strong>reduce the fiscal burden<\/strong> and improve the efficiency of the enterprise, increase revenue sources, bring in private players, promote competition, and develop a strong capital market.<\/p>\n<h2><strong>Achievements of the Disinvestment policy<\/strong>:<\/h2>\n<ul>\n<li>According to the Department of Investment and Public Asset Management (DIPAM), between 2004-05 to 2013-14, disinvestment raised Rs. 1.07 lakh crore, on an average yearly collection of Rs. 10,700 crores.<\/li>\n<li>However, from 2014-15 to 2017-18, the collection went up to Rs. 2.12 lakh crore, i.e., a yearly collection of Rs. 53,000 crores.<\/li>\n<li>The government exceeded the target of Rs. 1 lakh crore in 2017-18 and Rs. 80,000 crores in 2018-19.<\/li>\n<li>The success of\u00a0<strong>BHARAT-22 Exchange Traded Funds (ETF)<\/strong>took government closer to the disinvestment target.<\/li>\n<\/ul>\n<h3><strong>Challenges:<\/strong><\/h3>\n<ul>\n<li>Centre has <strong>not met the disinvestment target for 2022-23<\/strong> so far. The government&#8217;s disinvestment receipts stood at \u20b931,106.64 crores as against the budget estimate of \u20b965,000 crores<strong>.<\/strong><\/li>\n<li>The strategic sale of Central Electronics was also shelved due to <strong>lapses in the bidding process<\/strong>.<\/li>\n<li>Strategic sales stalled over FY21 and FY22 when India saw three waves of the <strong>pandemic<\/strong>, largely because potential investors were unable to physically inspect the assets, conduct due diligence and submit bids.<\/li>\n<li>Disinvestment has also faced\u00a0<strong>opposition from employees<\/strong>fearful of job losses.<\/li>\n<li>Several\u00a0<strong>state governments have opposed privatization<\/strong>as well.<\/li>\n<\/ul>\n<p>A <strong>third-party valuation<\/strong> of every PSU\u2019s assets and a minimum number of bidders should be necessary pre-conditions before going ahead with each sale. The government should look into strengthening the regulatory framework that ensures efficient market conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Contextual introduction. Body:\u00a0Explain some achievements of the Disinvestment policy.\u00a0\u00a0Also write some challenges. Conclusion: Write a way forward. Disinvestment is when the government sells its assets or a subsidiary, such as a Central or State public sector enterprise. Department of Investment and Public Asset Management (DIPAM) acts as the nodal agency for disinvestment. The main&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-do-you-think-the-governments-disinvestment-policy-has-achieved-its-intended-objectives-give-justifications-for-your-arguments\/\">Continue reading <span class=\"screen-reader-text\">[Answered] Do you think, the government\u2019s disinvestment policy has achieved its intended objectives? Give justifications for your arguments.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-226501","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/226501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=226501"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/226501\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=226501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}