Whether or not to disinvest: the case of Gujarat state fertilizers and chemicals limited

Abstract

After acquiring independence in 1947, the Government of India (GoI) adopted central planning as a strategy for economic development in 1951. The governments, both at the centre and in various states of India, played an active role in developing the core sectors like power, fertilizers, petrochemicals, steel, rail, road and port infrastructure by setting up several Public Sector Undertakings (PSUs) and providing funds through budgetary allocationsb. The private initiatives in the core sectors were either not allowed or allowed only to a limited extent.