By S. S. Sagar Priyatham & K. Prathima
1) INTRODUCTION
Privatization is transfer of ownership or control over assets or activities from the public to the private sector. In broad terms, privatization involves greater market force, ensures higher competition, reduces the role of the state in the economic sphere and thus brings in greater private involvement into government activities. It liberalizes different regulations to unleash forces of competition and to induce market forces into the economy. It is also referred to as structural adjustment programmes for the economy as a whole and as an element of broader economic policy. However, in its strict sense, privatization refers to divestiture to private entity1. Privatization, one of the policy reforms, is meant to improve the efficiency of state owned enterprises2.
