What are the major problems in disinvestments of PSUs in India?
Government is keen on transparency in disinvestments. Every aspect of the sale right from selection of the buyer to the selling price, the government wishes it to be transparent. So, it takes time for finalisation. Take for instance; even a single objection at the cabinet level meeting could delay matters. Unlike the private sector where one man at the top takes decisions, PSU disinvestments involves many departments and ministries. Most of the PSUs are controlled by more than one ministry sometimes even 5-6 ministries. Sometimes the concerned ministries differ on various issues with each following a different agenda. For instance, the ministry of finance may want the highest price even as the concerned ministry has something else at the top of its priority list. Ultimately, cabinet approval is sought . Small consolation is where the government is compelled to disinvest to mobilise money to finance its fiscal deficit. I think things should speed up a little now. In fact, disinvestments
