JAM Topic – PRIVATIZATION

PRIVATIZATION

• Transfer of ownership, property or business from the government to the private sector is termed privatization. The process in which a publicly-traded company is taken over by a few people is also called privatization.

• The stock of the company is no longer traded in the stock market and the general public is barred from holding stock in such a company. Then the company gives up the name 'limited' and starts using 'private limited' in its last name.

• Privatization is considered to bring more efficiency and objectivity to the company, something that a government company is not concerned about

• Studies show that private market factors can more efficiently deliver many goods or services than government due free market competition. Over time this tends to lead to lower prices, improved quality, more choices, Less Corruption red tape, and/or quicker delivery.

• Privatization in India can help to gain higher competitive advantages in education sector, there can be some manipulations but can be managed by proper rules and regulations, there’re always Pros and Cons that can be overcome by involving government and private sector effectively.