ABSTRACT
In 2010, the Indian government sold a 10 per cent stake in Coal India Limited, one of the largest state-owned enterprises in India, for $3.4 billion in the country’s largest ever initial public offering. The Organization for Economic Cooperation and Development defines State Owned Enterprises (SOEs) as the enterprises where the state has significant control through full, majority, or significant minority ownership. At the time of India’s independence in 1947, SOEs were perceived to be the best way to accelerate the growth of core sectors of the economy given a weak industrial base, inadequate infrastructure, lack of skilled human capital and an underdeveloped private sector. The property rights of an SOE can be broken down into three elements: rights to income generated from the property, rights to control and use of the property, and rights to transfer or sell the property. As an economic enterprise, the SOE has long been considered a collection of production resources and capabilities.
