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Q.3) Not all public sector enterprises are the same. This also means that there should be a difference in approach in the privatisation of public enterprises that is on the anvil. In light of this, suggest the approach and analyse the pros and cons of privatisation. ( 15 Marks)

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Swatantra

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“Mentor’s Comments”

  • https://www.thehindu.com/opinion/op-ed/reopen-the-files-reconsider-privatisation/article35027135.ece
  • In the intro, mention that privatisation of the public sector has been part of economic reforms since 1991.
  • In the body, suggest categorisation of enterprises based on their condition in three categories as suggested in the article. In the case of third category mention the Chinese model. In the pros and cons mention the efficiency issue, regulation issue, limits on the role of government, issues of social justice etc.
  • Conclude by mentioning the need to analyse the challenges and opportunities offered by privatisation as the economy faces the challenges of epic proportion in the aftermath of pandemic and make the right decision.

 

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13 responses to “Q.3) Not all public sector enterprises are the same. This also means that there should be a difference in approach in the privatisation of public enterprises that is on the anvil. In light of this, suggest the approach and analyse the pros and cons of privatisation. ( 15 Marks)”

  1. subhashree mallick Avatar
    subhashree mallick

    pay_HH1EGxOD3EGEhl

    1. Swatantra Avatar
      Swatantra

      Subhashree

      Frame the introduction better, privatization doesn’t mean enhancing public sector units, you can talk of reducing management and control of the government in PSUs.

      Categorization part is good, you can mention some examples in each category. Mention approach for each part in a bit more detail, you can make a table. In 2nd category mention approach clearly – private management through induction of a strategic partner is the best way to restore their value of these enterprises.They should ideally be made debt-free and new management should be given freedom in personnel management to get investor interest.
      Once debt-free, management control with a 26% stake may be given. As valuation rises, the Government could reduce its stake further and get more money.

      Pros and cons are fine, no need to limit the pros to banks, question is about all PSUs. Mention about better management, working efficiency, induction of better technology, money raised for govt to finance social development in pros.

      Way forward and conclusion is fine.

      Read some other answers. Keep writing. 🙂

      7.5/15

  2. Mradul sharma Avatar
    Mradul sharma

    ref id #0000422539

    1. Swatantra Avatar
      Swatantra

      Mradul

      Good attempt. Introduction is good. In pros you can add points about better management, working efficiency, money raised can be used to finance social sectors like health and education etc.
      In cons you can add things like lack of reservation for marginalized in private sector, profit motive even in emergency situations etc

      Approach part is fine, you can give examples of each type in respective sections.

      Conclusion is good.

      Read some other answers. Keep writing. 🙂

  3. Prashant Chaudhary Avatar
    Prashant Chaudhary

    Please review @Swatantra sir
    Payment Idpay_HNcChZDeZv4nu2

    1. Swatantra Avatar
      Swatantra

      Prashant

      First part of the question is not addressed properly. In introduction just define privatization, then move on to mention different types of PSUs such as- sick, obsolete and beyond redemption; sick but can be revived; profit making.

      Then mention what should the approach of the government be for each type of PSU. Take help from the article above.

      Also there are some factual mistakes in your answer such as loss making after 1991,govt decided to privatize all PSUs etc. Avoid them.

      Pros and cons mentioned are fine. In cons mention about issues of social justice like reservation etc

      Also write a balanced conclusion, ho through the article above- you will get an idea.

      Read some other answers. Keep writing.

  4. Fun Learning with Rajlaxmi. Avatar
    Fun Learning with Rajlaxmi.

    Review Sir
    Ref no 0000420120

  5. Santosh kharat Avatar
    Santosh kharat

    Payment I’d 115009045817

  6. Kartikey Singh Avatar
    Kartikey Singh

    pay_HHogiMPYpQ87sC

  7. ankita thakur Avatar
    ankita thakur

    Payment id-HJHAZEWKSzM3CX

  8. SUMITA DOWERAH Avatar
    SUMITA DOWERAH

    Payment Id: pay HFrdyJMOEZ9967. Please review, Sir.

  9. shivanshu pandey Avatar
    shivanshu pandey

    Please review @swatantra

  10. Deepali Rajan Avatar
    Deepali Rajan

    Kindly review @swatantra sir
    Id- 420326

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