ABSTRACT
The triggers for disinvestment in 1991 were mainly fiscal distress and conditions put in by IMF for giving loan to India. The criteria for selection of SOEs for privatisation from theoretical perspective are comparative advantage, and net economic yield. The empirical evidence shows influence of political and financial factors in selection. Privatisation is a polarising policy issue. Broadly the Congress led governments resorted to partial disinvestment of CPSEs, while the BJP led governments pursued strategic disinvestment leading to management transfer to the private entity. The journey of divestiture is analysed in four broad time slots. The first phase from 1991–92 to 1997–98 under Congress led United Progressive Alliance (UPA) government, and later Congress supported United Front Government. The second phase from 1998–99 to 2003–04 under National Democratic Alliance (NDA) government was led by Bharatiya Janta Party (BJP). The third phase from 2004–05 to 2013–14, under UPA government led by Congress party, and the fourth phase from 2014–15 onwards under NDA government led by BJP. The New Public Sector Enterprises Policy for Atmanirbhar Bharat announced in 2020–21 drastically reduced the role of public sector in Indian economy.
