ore institutuional credits:- more institutional credit to privatesector enterprises from national financial institutions.according tothe New Industrial Policy,these financial institutions will not insistfor conversion of loans into share capital.
Argument against privatisation:
Unbalanced growth:- Privatisation is no gurantee for social betterment.It results in unbalanced growth of the economy.Publicsector is indispensable for the development of all sectors/sections of the economy.Adverse effects on standard of living:- Privatisation has nothing todo with standard of living of the masses.Less scope for the development of infrastructure:- economic andsocial infrastructure remains untouched.Growth of state monopoly:- privateisation tampers public sector and prohibits any development .
ADVANTAGES OF PRIVATIZATION
Increased efficiency Specialization Corruption Accountability Security Goal
DISADVANTAGES OF PRIVATIZATION
Short term view Downsizing Political interference Reliability
Problems of PSUs
1. Price policy of the Public Sector undertakings.2. Underutilization of capacity.3. Problem related to planning and construction of projects4. Problems of labour, personnel and management5. Lack of autonomy
Other important factors