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12 September 2014, Scroll.in

Why selling stakes in public sector firms may not really benefit the economy

Scroll published an article written by Rajrishi Singhal, Senior Geoeconomics Fellow, Gateway House, on how selling assets is a convenient way to balance the books for the year. But it does not solve the country's deep-rooted fiscal problems

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The National Democratic Alliance government’s announcement on Wednesday that it will sell shares in its blue-chip public sector companies – Oil & Natural Gas Corporation, Coal India Ltd and National Hydroelectric Power Corporation – has pleased fiscal hardliners. One projection estimates that the government could earn as much as Rs 45,000 crore through the sale of shares.

Early in July, the government announced that it would be selling 5% of the Steel Authority of India Ltd.

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