A Study of Disinvestment of Central Public Sector Enterprises in India (1991-2016)

The study deals with the evolution of the disinvestment policy with respect to the Central Public Sector Enterprises (CPSEs) since 1991 and examines two issues specifically – development of legal perspective on disinvestment through important cases and valuation methods of shares/assets adopted in the Strategic Sales of CPSEs.The study outlines the evolution of disinvestment policy, the institutional structure, the role of different bodies/agencies in disinvestment process and the key Supreme Court decisions related to disinvestment. Following broad areas are covered in the study:• Disinvestment Procedures; the methods adopted for disinvestment with a particular focus on the decision making process in case of Strategic Sale of a Company and Public Offerings.• Valuation Methods; a brief account of the methods used for carrying out the valuation of a company along with some findings/comments on the same.• Legal Issues; the stand taken by the Supreme Court in dealing with matters related to Disinvestment of CPSEs.• National Investment Fund; creation of a Disinvestment Proceeds Fund keeping in line with the objectives of the Disinvestment Policy.The study mentions the useful experiences gained in the course of evolution of the policy. It also attempts to relate the recommendations made by different researchers and Comptroller and Auditor General of India (CAG) on the issue of valuation to the process of disinvestment and makes concluding observations