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Strategic disinvestment of Government shareholding in Central Public Sector Enterprises (CPSEs) will boost efficiency and aid the creation of national wealth. This augurs more support for realising efficiency gains from privatisation in the Indian context and bolsters the case for aggressive disinvestment of CPSEs.
According to the Economic Survey 2019-2020, there has been an improvement in financial indicators such as net worth, net profit, return on assets (ROA), return on equity (ROE) of the privatized CPSEs.
Privatised CPSEs have been able to generate more wealth from the same resources, the survey said after an analysis of the before-after performance of 11 CPSEs which underwent strategic disinvestment from 1999-2000 to 2003-04.
The survey also estimates that a strategic disinvestment of Government’s shareholding of 53.29 per cent in BPCL will lead to an increase of around ₹ 33,000 crore in national wealth.
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