tag:blogger.com,1999:blog-26771583.post115230226372727660..comments2024-03-28T00:31:18.717-07:00Comments on Everyday Entrepreneurs: Disinvestment stoppedKanwal K Mookheyhttp://www.blogger.com/profile/16448313139492296375noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-26771583.post-13639985192542314192017-08-08T04:41:21.953-07:002017-08-08T04:41:21.953-07:00Wow nice articleWow nice articleAdvance Innovation Grouphttps://www.advanceinnovationgroup.com/noreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152530963363535982006-07-10T04:29:00.000-07:002006-07-10T04:29:00.000-07:00Disinvestment is a very complex, and strategically...Disinvestment is a very complex, and strategically very significant process. In any such process, common sense would dictate the following:<BR/>1. The objectives of the process should be clearly laid out. What is it that we could like to achieve at the end of it all.<BR/>2. What should our overall strategy be in order to implement the process in a way wherein we achieve those objectives. Standing on the pavement corner and selling all your assets to the highest bidder who walks in that day could be one strategy. Timing your asset sales in a way where you maximize your earnings could be another way. Sequencing them such that the impact on your employees, shareholders and other stakeholders is on the whole positive is another strategy.<BR/>3. Putting the right controls in place, so that disinvestment is not a means for members on the disinvestment committee and other assorted politicians and bureaucrats to fatten their pockets is critical. Globally, disinvestment has been a heavily abused process and has resulted in very many people becoming rich. You have Russia as a striking example of all that can go wrong with privatization. Which is simply a cover for asset-stripping and the subsequent rise and rise of the mafia.<BR/><BR/>I remember in 1991 when the whole process kickstarted, Manmohan Singh and team had come out with a strategy white paper on disinvestment. Sadly, that remained only on paper. Successive governments never bothered to have a coherent strategy to the entire process. Absolutely no method to the madness. And even blunders such as the sale of the Centaur hotel have not forced the government (a different one this time) to relook at how it can be done better.<BR/><BR/>It was never going to be an easy process. But, shooting in the dark isn't helping anyone. Why, for instance, has Nevyeli Lignite suddenly been chosen to be privatized. Doesn't it maybe just hint that there is more to this than meets the eye. That maybe there are mining lobbies at work that influenced this particular decision, and almost got their way through?Kanwal K Mookheyhttps://www.blogger.com/profile/16448313139492296375noreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152521532653651112006-07-10T01:52:00.000-07:002006-07-10T01:52:00.000-07:00What is the correct pace? Social upheaval is going...What is the correct pace? Social upheaval is going to happen any case. In fact, the quicker the better. It kills me everytime I see government trying to do business!!!! That's like Harsha Bhogle commenting on soccer. NLC and all other PSUs are getting the market price. There is no reason to delay privatization. Absolutely none.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152461508072749032006-07-09T09:11:00.000-07:002006-07-09T09:11:00.000-07:00Anonymous: actually there is very little justifica...Anonymous: actually there is very little justification for the government to actually <I>be</I> in business in the first place. For instance, why is the government interested in lignite mining (with Nevyeli)? Government should definitely get out of business. My point was that there should be a method to the madness and the disinvestment process should be far more transparent, correctly paced, and economically justified than it is right now. Even if profit-making PSU's have to be sold of, let's do that. But let's at least get the right price for it. And let's make sure there are enough clauses in the deal to see that the weakest get equal consideration in the entire affair. And let's also make sure that there are the right societal institutions to handle the effects of such sales.Kanwal K Mookheyhttps://www.blogger.com/profile/16448313139492296375noreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152458821885854532006-07-09T08:27:00.000-07:002006-07-09T08:27:00.000-07:00Thats true...no justification in selling off profi...Thats true...no justification in selling off profit making PSUs just for the sake of making money.How on earth can govt sell off companies tht were built with public money to private ppl ..and tht too when no justfication is ard..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152391917880164052006-07-08T13:51:00.000-07:002006-07-08T13:51:00.000-07:00Hey ankur, thanks for pointing it out! Put it down...Hey ankur, thanks for pointing it out! Put it down to multi-tasking foul-up...:)Kanwal K Mookheyhttps://www.blogger.com/profile/16448313139492296375noreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152391646286770512006-07-08T13:47:00.000-07:002006-07-08T13:47:00.000-07:00but independent of that, the post was good.but independent of that, the post was good.ankurghttps://www.blogger.com/profile/14585848328409507571noreply@blogger.comtag:blogger.com,1999:blog-26771583.post-1152391594431757272006-07-08T13:46:00.000-07:002006-07-08T13:46:00.000-07:00intrepi , are u too NDA pro that even after its m...intrepi ,<BR/><BR/> are u too NDA pro that even after its moving out of the power for more than 2 years now u said NDA as the ruling party, isnt it UPA.ankurghttps://www.blogger.com/profile/14585848328409507571noreply@blogger.com