The Rangarajan Committee of 1993 was constituted by the government for making recommendations in context with the disinvestment. The committee said that:
Arguments on Disinvestment For
Against
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Conclusion
Disinvestment assumes significance due to the prevalence of an increasingly competitive environment, which makes it difficult for many PSUs to operate profitably. This leads to a rapid erosion of value of the public assets making it critical to disinvest early to realize a high value.