Impact of disinvestment on performance of central public sector enterprise in India

Abstract

The present study relates to the impact of disinvestment on the performance of central public sector enterprises CPSEs in India. Over the years, CPSEs have witnessed a period of rise to fall or a commanding height to sickness which have resulted in their disinvestment as part of the structural economic reforms introduced by the Government in 19191. As on 31 March, 2020, 101 CPSEs have undergone disinvestment exercise for 255 times and an amount of Rs. 404758.06 crores have been realised through disinvestment. In view of this, the study looks for answer to many questions which require empirical investigation such as does disinvestment lead to improved efficiency and performance of these CPSEs? What are the factors other than disinvestment and ownership transfer that affect the performance of CPSEs? Whether disinvestment is a necessary or sufficient condition for improving the performance of CPSEs. Any disinvestment programme initiated by the Government majorly impacts the employees working in the organisation at various levels in terms of their behaviour, perception, motivation, moral, job satisfaction, job security, social security etc. Therefore, analysing the perceptions of employees on how disinvestment affects organisational changes is paramount to make any policy prescriptions.