The process of disinvestment in India began in 1992, under the aegis of new economic liberalization policy put forward by then Finance Minister, Dr. Manmohan Singh. Disinvestment was supposed to be the tool in the hands of government to improve the functioning and profitability of public sector enterprises and also raise funds to mitigate its fiscal deficits. However, over the past decade, this exercise has been plagued by criticisms and controversies and has not achieved desired results for the government because of political bickering.
divestment
divestment
Divestment refers to the process of selling off assets, investments, or subsidiaries to achieve financial, ethical, or social objectives. Forms of divestment include financial divestment, where companies or individuals withdraw investments from specific sectors (like fossil fuels or tobacco), strategic divestment, which involves selling parts of a business to streamline operations, and ethical divestment, where investments are retracted for moral reasons, such as human rights concerns. Other examples include divesting from companies linked to controversial practices or countries.
An advantage of a divestment is that it is a way for a company to sell off parts of the company it no longer wants. Another advantage is that itÕs a public process.
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Web Therapy - 2008 Divestment Opportunities 5-26 was released on: USA: 27 May 2013
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Divestment can lead to financial losses for organizations, as selling off assets may result in lower returns compared to holding them long-term. It can also limit the influence of the divesting entity over the targeted industry, reducing opportunities to engage in dialogue and drive change from within. Additionally, divestment might create negative public perception if not aligned with a clear ethical or strategic rationale.
Privatization is the process of transferring the ownership of a business of a public sector to the private sector. In a broader sense, privatization refers to transfer of any government function to the private sector including governmental functions like revenue collection and law enforcement. Divestment is said as the opposite of Investment. Investment means acquisition of certain assets; divestment means the release of assets. A business may be that a particular arm of its is not compatible with its core business and hence may decide to shelve or divest this business. Divestment may be done for various economic or social reasons.
In 1999, after the Vajpayee Government came to power in India under the umbrella of the National Democratic Alliance, Arun Jaitley was appointed Minister of State for Divestment, or Disinvestment, a new Ministry created for the first time.
The cast of Divestment - 2008 includes: Sharon Coade as Audrey Alan Howley as Brendan Art Kearns Dan Madden as Junior Executive Audrey McCoy as Caroline Shona Weymes as Denise Johnny Williamson as Rory
Frederick A. Lovejoy has written: 'Divestment for profit' -- subject(s): Corporate divestiture