Essay Benefits Of Privatization

prompted a debate over whether privately owned investment firms might not be better suited to administer the program 's benefits.
7.5.3 BENEFITS OF PRIVATIZATION:
Privatization indeed is beneficial for the growth and sustainability of the state-owned enterprises. The advantages of privatization can be perceived from both microeconomic and macroeconomic impacts that privatization exerts.

A. Microeconomic advantages: o State owned enterprises usually are outdone by the private enterprises competitively. When compared the latter show better results in terms of revenues and efficiency and productivity. Hence privatization can provide the necessary impetus to the underperforming PSUs (Public Sector Units). o Privatization brings about radical structural changes providing momentum in the competitive sectors.
o

The annual rental payments may not be less than the market value of the property divided by the lease term in years.

Combination of Privatisation Methods
It is important to note that the use of a combination of privatisation methods is applied to the privatisation of State controlled enterprises that are deemed to be important entities in the country 's overall infrastructure or entities holding a dominant position in certain branches of the economy.
According to the Regulations on Privatisation of Shares of Enterprises that are Important Infrastructural Entities or Entities Holding a Dominant Position in Certain Branches of the Economy, an enterprise is considered an important entity in the country 's infrastructure and is privatised in accordance with the requirements of the aforementioned regulations when it meets at least one of the following criteria:
 its authorised capital is over LTL 50 million (approximately EUR 14.5 million);
 the enterprise holds a dominant position in the market of its main activities;
 the enterprise is an infrastructure object;