After the congress cum communists raised the issue why should we privatise profit making PSUs every body started feeling yes why should we?
Peole started saying why sshould we privatise if they are not burdensome since they add to Exchequer and not a drain on it.
But the arguments in favour of disinvestment are still stronger.
DISINVESTMENT WILL UNLOCK THE FULL POTENTIAL OF GAINT PSUs.
TO keep in line with international trends and produce cost effective output will never be possible in the existing government controlled setup. To involve a strategic partner will make them more sharper in their approach.
DISINVESTMENT WILL GIVE GOOD OPPURTUNITY FOR INVESTORS
By disinvesting say some 24% to people Govt can still own the co and retail investors get opportunity to invest in a good company.The stock market is having scarcity of good scrips where people can invest.Analysyts say scams happened in stock market are mainly because of lack of dept in market.
THE MONEY RAISED CAN BE USED FOR FURTHER INVESTMENTS.
Most of the PSU were established by Govt. when other private players were not daring to enter longterm projects.But now the situation has changed There are players who want to enter that feild.They are ready to buy equity 20 to 25 times premium.So Govt can cash part of its investments and invest in new avenues.
NOW PROFIT MAKING BUT WHAT IS FUTURE
Going by the congress cum communist argument PSU should sold only if they are loss making.Who will be interested to buy loss making company.Even if they buy they will buy at a cheap price.profit making PSU if not disinvested now will become loss making in a decade or so and GOVT has to sell them at loss then if they dont sell them at profit now.