Privatization of transportion in India

Lal Bahadur Shastri Institute of Management &Technology

ROHIT GERA

PGDM Batch 2021-23

 Agenda
1. Introduction
2. Privatization
3. Origin
4. Privatization of Public Transport
5. Privatization of Highway
6. Need for Privatization
7. Current Scenario
8. Pros of Privatization
9. Cons of Privatization
10. Conclusion
 Introduction

Privatization was introduced during the eighties by shri Rajiv Gandhi.

P.V. Narsimha Rao gave actual speed by introducing the new industrial
policy.
PRIVATIZATION

THE TRANSFER OF OWNERSHIP ,

PROPERTY OR BUSINESS FROM THE
GOVERNMENT TO THE PRIVATE
SECTORIS TERMED PRIVATIZATION.

THE COMPANY GIVES UP THE NAME

“LIMITED” AND START USING
“PRIVATE LIMITED” IN ITS LAST
NAME.
PRIVATIZATION was coined in English descriptions of
the German experience in the mid 1930s.

The Nazis sold off public ownership in “

steel, mining, banking, shipyard, ship-lines, and rail
ways.
PRIVATIZATION OF PUBLIC TRANSPORT

IMPROVED QUALITY

BETTER CUSTOMER SERVIVE

JOB OPPORTUNITIES

REDUCE JAMS

REDUCE POLLUTION

REDUCE OIL CONSUMPTION

PRIVATIZATION OF HIGHWAYS
OWNED AND OPERATED BY PRIVATE COMPANIES

PROFIT MAKING MOTIVE

CHARGE TOLLS TILL DEBT RETIRES

FULFILL TRANSPORTAION NEED

LOW TRANSPORTATION BUDGET

INVESTMENT FROM PRIVATE SECTOR

PROVIDE HIGH CLASS INFRASTRUCTUR

REDUCE ROAD ACCIDENTS

GROWTH OF PRIVATE SECTOR

 CURRENT SCENARIO

 NHAI will rely on private sector for construction for

half of the project in this FY
 PM MODI has asked NHAI to promote private
companies in making of highway
 TRANSPORTATION AND HIGHWAY MINISTER NITIN
GADKARI wanted to apply London model for
increase the growth of public transportation in INDIA
 PROS OF PRIVATIZATION

 Private companies often operate more efficiently

than public companies
 Acceleration of technological progress
 Less bureaucratic work style
 Higher wages
 Attracts more highly qualified people
 CONS OF PRIVATIZATION
 Privatization may not be suitable for important
infrastructure
 Harmful if the business has a monopolistic character
 Access to medical equipment may no longer guaranteed
 Public companies may be sold to cheap to private
corporation
 Insufficient regulation
Overall concluding , Privatization is the need of the economy. It helps economy to generate
more revenue than earlier with optimum utilization of resources (in a better way).
Moreover , providing better facilities and services to the consumers .

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