Divestment...a good option..hmmmm

GoI intends to raise more than $3 billion this fiscal by selling its stake in some of the PSUs. Result: Stock prices of the firms rose and every one cheers!

So, obviously its a good thing.

Or is it? This is a perspective from a common man. Do you want to kill a cash cow? or do u want to milk it continuously?

can't there be a case where the govt. retains the company as a promoter but instead lets it run by promoters. Like BOOT basis. Why not? Sounds ridiculous???

What is the reason for divesting the stake? Raise money to fund social activities. But when the efficiency of the social activities is so less, that much of the money lands in the hands of the politicians..why raise the money through these ways.

In an era where private companies are trying to consolidate their holdings why should govt. divest its stake. The argument can be that govt.'s duty is not to run organizations. But when creating employment opportunities is one of the important functions of the govt. divesting its stake in potential employment generation organizations would not help the cause.

I am not sure, but apart from the shareholders in those companies who are just willing to trade their stocks, and the politicians who will accumulate much of these $3 billion...neither the employees nor the people may benefit in the end.

Again I hope Iam wrong!!

Comments

Popular posts from this blog

Now...why Marry in the first place?

Acquittal

Caste & misinterpretation of religious scriptures!