Privatization Privatization is the incidence or process of transferring ownership of a business enterprise, agency or public service from the government to the private sector. Simply speaking, privatisation means permitting the private sector to set up industries which were previously reserved for the public sector. Under this policy many Public Sector Units (PSUs) were sold to private sector. The main reason for privatisation was that PSUs were running in losses due to mismanagement and political interference.
The managers could not work independently and the production capacity remained under-utilized. To increase competition and efficiency privatisation of PSUs was inevitable. Some examples of Public Sector Enterprises recently privatlised are as follows. i.
Bharat Aluminimum Co. Ltd., (BALCO) ii. Hindustan Zinc Ltd (HZL) iii. Indian Petrochemicals Corporation Ltd (IPCL) iv.
Maruthi Udyog Ltd (MUl) v. Modern Food Industries Ltd (MFIL) India Scooters Limited - The first ever company Privatized in India