Disinvestment and Telecom Sector of India

Dr. Gagan Singh .


Public sector undertakings in India were viewed as a mechanism for structural transformation of the economy and for growth with equity and social justice. Disinvestment has supposed to be the tool in the hands of Government to improve the functioning and profitability of public sector enterprises and also raise funds to mitigate its fiscal deficits. India has opened its telecom sector to foreign investors up to 100 percent holding in manufacturing of telecom equipment, internet services, and infrastructure providers 74 percent in radio-paging services, internet  and 49 percent in national long distance, basic telephone, cellular mobile, and other value added services. In the present study an attempt has been made to examine the impact of disinvestment on the financial and operating performance of selected units of telecom sector. The management of the telecom sector failed in controlling its various expenditures during the post-disinvestment period and its liquidity position has not been found satisfactory.


Corporate Liquidity, Disinvestment, Liberalization, Strategic Sale

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