what is disinvestment?

Question

what do u mean by disinvestment?it's advantages & disadvantages.the present situation of India in disinvestment.

Answer 1

Depends on the context.

In macroeconomics, where the term is used most often, it means negative net investment (the country as a whole continues to invest, but not enough to compensate for "capital consumption allowance", or capital stock being decommissioned).

In business, it refers to situations when a company has more money or capital assets than it knows what to do with and decides to handle this problem by selling surplus assets and returning money to investors by paying down debt, buying back stock, or paying special dividends. Typically, these situations occur in declining industries or when restructuring conglomerates.

Answer 2

Sometimes it is also used for privatization of public company.

In Indian context it may be advantageous if it means increasing the efficiency . breaking the bottlenecks , opening of floodgates of progress. Refer BALCO.

It may also mean landing into the charges of corruption. Refer centour hotel.

Here is what it means from the global point of view.

Disinvestment refers to the use of a concerted economic boycott, with specific emphasis on liquidating stock, to pressure a government towards policy or regime change. The term was first used in the 1980s, most commonly in the United States, to refer to the use of a concerted economic boycott designed to pressure the government of South Africa into abolishing its policy of apartheid. The term has also been applied to actions targeting Northern Ireland, Myanmar, and Israel.

Answer 3

'''Disinvestment Is A Process Of Revival''
further refer to

http://www.rediff.com/money/2002/jun/21dvst.htm
http://www.india-today.com/btoday/netexcl/netex2106/jaitley.htm

Answer 4

Capital investment shrinkage caused by a firm's failure to maintain or replace capital assets being used up or by the firm's sale of capital goods such as equipment.

Answer 5

sory sir...........no idea