Meaning :-

• Privatization is the process of transferring

ownership of business, enterprise, agency,
public service or public property from the
public sector.

• The business that operates for a profit or non-

profit organization.
 WHY PEIVATIZATION

• To reduce government involvment in commercially viable

activates.

• Increase efficiency in delivery of programs and service.

• Provides competition in market place which transfer the

lower price and greater choice for the consumer.
Methods of privatization

MAIN METHODS:

• SHARE ISSUE PRIVATIZATION

" Selling shares on the stock market".

• ASSET SALES PRIVATISATION

" Selling entire organization to a strategic investor by auction".

• VOUCHER PROVATIZATION
" Distributing ownership to all for free or at lower cost".
SUB METHODS :

• CONTRACTING OUT :
" Production of service by private firm under a
contract".
" Under this scenario, the private sectors firm
is paid directly by the government".

 EXAMPLE:
collection of disposal waste .
other things include security services, data
processing services.
Benefits of privatization :

1. Improve efficiency

2. Lack of political interference

3. Short term view

4. Increased competition
Disadvantages of privatization
• Investment in industries of comfort and luxurious products instead if
necessary products and problem if optimum use of capacity.

• Aims at making profit which adversely affect the interest of the community.

• The private companies don’t like to have their branches in ruler cities.

• Their services remain confined to cities where sufficient clients are

available.

• Problem of unemployment.
 PRESENTED BY,

PAYAL BHOR, DEEPMALA CHAUHAN, OMKAR CHAVAN

PRACHI CHHEDA, DHIRAJKUMAR DAKUA , SAIPRASAD DALAI,
ANJALI DANGAR