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.

• Survey presents an analysis of the before-after performance of 11 CPSEs 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 of CPSEs to:
  • Bring in higher profitability.
  • Promote efficiency.
  • Increase competitiveness.
  • Promote professionalism.