Privatization of Public Sector
Privatization of public sector implies buying of the government owned units by private companies for increasing profits. In simpler terms it means 'disinvestment'. It normally occurs when the government is unable to make profit out of a particular unit under it's control, or the unit is incurring heavy losses or if it is unable to provide the bare minimum services to the people. All this causes the government to sell the unit to a private firm as it is unable to handle the unit efficiently and is incurring heavy losses. The question then arises 'Is privatization actually beneficial in long terms?' 'Should there be a limit to disinvestment?' To find the answers to our above queries let us develop a further insight in the issue. The best example we have of privatization today is the Telecom sector. Gone are the days when we had just the BSNL or the MTNL landlines phones at our homes. Today we get to choose from a variety of telecom players be it AIRTEL,RELIAN
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