PRIVATISATION IN INDIA Privatization industries means opening than gates of public sector to private sector. Transferring of public sector industries to private sector is called privatization. Most crucial sector of Russia and other socialist economies was public sector. In socialist and under developed countries, decision-making power on the part of management and excessive political interference turned public enterprises inefficient and proved to be the single factor responsible for the failure of these economies. On the other hand, economies of U.S.A., Japan. Germany etc. were making rapid progress under private sector prices of public utility services like. Electricity irrigation, transport, water etc, are not detrmined on the basis of political, social and other non-economic considerations. New industrial nation of Asia like Korea, Singapore, Hong Kong, Taiwan have achieved a faster rate of economic economy model was adopted by Russia, China, etc. in which much importance was given to public sector which has failed. So it led the growth of privatization. Before independence, private sector dominated in India. During the period of planning importance of public sector increased and that of private sector relatively declined. In 1991, new economic policy was declared. Under this policy, Private sector has been accorded great importance and the process of privatization has been initiated in a limited way the number of industries reserved for the public sector has been reduced from 17 to 14 only, and the remaining industries have been opened for private sector. As many as 5 to 20% percent of share of public sector have been sold to financial institutions mutual funs, public and workers. There share constituted about 8 percent of spare capital of public sector industries. Public sector industries will be treated in the same way as sick industries of private sector with a view to improving the working of public sector enterprises a system of memorandum of understanding (MOU) is introduced in 1992-93 about 98 public enterprises and in 2000-02 108 enterprises have been identified and signed under memorandum of understanding. In eight plans, public sector is recognized by adopting the concept of prevarication along with modernization. National Renewal fund war established for protecting the interested of employee on account pf privatization. Scope of total privatization is limited in India. There is, however, the need to run public sector strictly on commercial lines by improving its efficiency and private sector should alls take initiative the enter every field of the economy is accordance with the spirit of nice places. We should make use of privatization more as toil than of food. In fact, India?s large interests and future well being lie in the co-existence of private and public sector. Written by?AMIT SHARMA Plot. No.- 62, Sorbs vihar. Jaitpur, badarpur. New Delhi, 110044 Phone no. 098105-80814 Declaration-: The article titled ?PRIVATISTION IN INDIA? a) is my original work b) no part of any book or journal has been reproduced without acknowledgement c) Does not from part of article already published. d) Has not been sent for publication elsewhere, and e) I take responsibility for the view and opinions expresses in the article.
This abstract was checked by WhiteSmoke Solution. Learn More.
