IMPACT OF DISINVESTMENT ON THE FINANCIAL & OPERATING PRFORMANCE OF THE PETROLEUM SECTOR IN INDIA

NEED OF THE STUDY

Indian economy needs crucial change Privatization of PSUs came into existence because of their poor financial & operating performance Privatization means the transfer of both ownership & control from public sector to private

Contd.
This action will reduce the role of state & lessen the states fiscal deficit Petroleum sector is one of the leading public sector in India and provides support service to small & medium scale sector So it is necessary to study the impact of disinvestment on petroleum sector

Following companies were studied

Cochin Refineries Ltd. Madras Refineries Ltd. BPCL HPCL ONGC IOCL Bongaigaon Oil Refineries Ltd.

OBJECTIVE
To study the impact of disinvestment on the financial & operating performance on the petroleum sector in terms of financial strength, liquidity, sales, investment, employment and asset usage

HYPOTHESIS There is no significant impact of disinvestment on the financial and operating performance of the units

RESEARCH METHODOLOGY
The objective have been studied through the use of secondary data which has been collected from published report Data has been analyzed with the help of statistical tests & various accounting tools like ratio analysis, std. deviation, co-efficient of variation, t test etc..

RESULT
Cochin Refineries Ltd., ONGC, BPCL, HPCL improved their profitability after disinvestment IOCL, Bongaigaon Refineries Ltd. declined their profitability after disinvestment because of some poor decisions of management

CONCLUSION
Initiation of disinvestment in most of the units has been successful Maximum limit of disinvestment in the case of HPCL There should be more provision for R & D in this sector to compete the global market

 Further suggested that disinvestment shouldnt be used for bridging the govt. revenue deficit, but should be used in development of infrastructure and improvement in the sectors like education, health, water supply, restructuring PSUs & providing safety for workers.

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