The document discusses India's disinvestment process, methods, and problems. It outlines the government's strategy of using disinvestment to meet budget deficits by selling state-owned assets. Various methods of disinvestment are described, including strategic sale, offer for sale, and asset sale. The disinvestment process takes 2-3 months and involves selecting a PSU, due diligence, and financial bids. Valuation methods include discounted cash flow, net asset value, and profit earning capacity. Key problems are a lack of transparency and failure to attract foreign buyers. Case studies on BALCO's disinvestment are provided to illustrate valuation disputes and post-sale disputes. Suggestions are made to establish clear policies, de-link disinvestment

1. Disinvestment in India Methods , Procedures and Problems

10. DISINVESTMENT PROCESS 2-3 months 3-6 months 1 week Selection of PSU by MODI Approval by CCD Formation of IMG & Selection of Global Advisors Submission of Expression of Interest Submission of Initial Technical Proposal Due Diligence / Commercial negotiations Finalise Shareholders Agreement (SHA) & Share Purchase Agreement (SPA) Financial bids Selection of strategic partner & signing of SHA & SPA

16. Fact File Top line 898 Cr. PAT 56 Cr. HC 7500 Sale of 51% stake in Balco (Management Control) Mines

24. SUGGESTIONS AND REMARKS