Professional Documents
Culture Documents
Disinvestment or Disengagement
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Land of the dying destitute
According to the International Poverty line, there are 456 million people in India Below
Poverty Line (BPL), i.e earning less than $1.25 per day.
According to the Indian Poverty line, 27.5% of Indians are Below Poverty Line (BPL)
According to the HPI (Human Poverty Index) which is part of the Human Development
Index (HDI) Report of 2007-08, India ranks 62 nd among 108 developing countries of
the world in terms of poverty of its people.
According to this same index, India’s per capita GDP (measured in Purchasing Power
Parity or PPP in US $) is only 3452 US $ per year. In this category India ranks 117 th out
of 177 countries precede by Syrian Arab Republic and Nicaragua.
There are 50-60 million tonnes of food grains are lying unused in the warehouses of the
Food Corporation Of India. For the government the cost of storing these food grains is
around Rs 11,000 crores every year at Rs. 2,200 per tonne of grains.
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Continued……..
India ranks 125th among 177 countries of the world in the category of life expectancy.
The average life expectancy in India is only 63.7 years as compared to Japan which has
the highest life expectancy in the world of 82.3 years.
India has the largest number of birth in the world which are about 27 million per year.
The maternal mortality rate in India is 450 per 1 lakh women. And the infant mortality
rate is around 38 per 1000 births.
Due to population explosion most of these poor people in India don’t have access to
basic necessities like clean drinking water, sanitation and health facilities.
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Lack of basic necessity :-
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Land of the dying destitute:-
Points to remember…
According to the Human Development Index Report of 2004-05, India stands 114 th in
the world among 177 other countries with an Adult Literacy Rate of 61% preceded by
Rwanda & Malawi. More than one-third of the population or close to 360 million
people of age seven and above are illiterate.
But in reality only about 37.5% of the people in India are termed as Functionally
Literate. (Functionally literate people are people who are capable of reading simple
instructions on how to operate a machine.)
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Continued…..
In 2001, The Sarva Shiksha Abhiyaan (Education for all) Mission
was started which was pioneered by the ex prime minister of India,
Mr. Atal Bihari Vajpayee.
In 2008, The Times of India started and initiative called The Teach
India Movement. The motto of this movement is ‘LETS LEARN TO
TEACH’.
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School chale hummm….
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Teach INDIA !!!!
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Mass illiteracy and the Mafia Raj:
Points to remember…
The political system today in India thinks it is above the law and the
politicians use either their power or thugs to bend the rules and the
law as per their convenience.
With the main pillars of Democracy, i.e. the Government & the
Judiciary, rotting away at the core, India has a bleak future indeed.
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corruption…..
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The Withering Repressive State:-
Points to remember…
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Disinvestment or Disengagement
Definition: Disinvestment or divestment A Disinvestment Commission 1997
is the sale of equity or the bond capital was constituted to advise the
invested by the government in PSUs
government on whether to disinvest
in a particular enterprise, its
(Public Sector Undertakings). In other modalities and the utilization of the
words it is the liquidation of part of proceeds. The commission, among
government holdings in PSUs. However other things, recommended:
it is the government and not the PSUs that
receives money from disinvestment. *Restructuring and reorganization of
PSEs before disinvestment,
Ever since 1991, the government of the
day has tried to sell ownership in public
*Strengthening of the well-
functioning enterprises, and
sector undertakings (PSUs). After 18
years, there is still no clarity on why the *To utilize the disinvestment
government wants to do this. proceeds to create a fund for
restructuring of PSEs.
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Continued….
The first ruling of this commission
gave impetus to the strategic sale of
many Public Sector Enterprises like
Hindustan Zinc, Maruti, VSNL, etc
since 20000.
Presently there are about a dozen
PSUs in which the government
holding is between 90-99%, which
includes companies like Hindustan Therefore the budget proposes that
Copper, MMTC ( Minerals & Metals disinvesting about 10% of stock in
Trading Corporation of India),
NMDC ( National Mineral these PSUs will raise anything
Development Corporation), National from 25,000cr to 37,000cr, while
Fertilizers, Scooters India, etc. Also still retaining with the government,
on the list of prospective PSUs to be about 90% of the holdings of these
disinvested are NHPC (National
Hydro Power Corporation), Coal PSUs. These funds can then be
India, etc. used to reduce the fiscal deficit.
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Budget 09 :--
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Points to remember about Disinvestment or
Disengagement :-