Analysis of Privatization of Air India, BPCL and other company .

Analysis of Privatization of Air India, BPCL and other company .

Hello friends how are you .Today we are going to discuss privatization of government organizations .There are two sides of privatization , one is good and another is bad . Let us first discuss about good things .

Good things about privatization:
There some good things about privatization of Government company . The points are listen below.

• We know that main motive of any private company to create profit,because if they will get profit then only they can pay to their employee , so all those government company which are not doing well will start performing well because employee of company will be serious ,because they take fast decisions and there will not be any bribe taken by staffs .

• For example, Many projects of DR-DO has failed. Take an example of Japan railway , they made their railway private with proper planing and they distributed zone basis to their railway and also they have very strict law ,so that prices are minimal and poor can also pay the price . 

• In Government organization people are lazy because they know no one can fire them from job .In case the organization is not performing well also and not earning money still government will pay them by taking tax from other private employee. So they do not put too much efforts to complete something .

• Main goal of privatization is to establish a competitive environment among companies and we know  because of competitions price will reduce and  services will increased.Because every one will try to give better services and in this approach every company will have top and best technology.And hence other country will prefer to buy the products from that company also.

Bad things about privatization:
There are some Negative things also if we make all government company as private. The points are listen below.

• Making every government company as the Private can create a monopoly(completely owner of everything) of one company and they can take any decisions for profit, as earning profit is their main goal so they will not care for poor .

• A best example is UK railway , In UK they made their railway as private but it has been done by many company , some company owned Track system some company owned Catering system and few company taken few more parts.So basically ,instead of own by one company it was own by many companies in distributed way. because of this things got totally unorganized and price of ticket got too high . After that government subsidized price by taking high tax which again become burden for the middle class people as they have to pay high tax so that government can pay it to railway and poor can also afford train services .
•  Competition  can be possible between  small company and startups , it can not be possible for Indian Oil or Indian Railway or ISRO  .Why?Its very simple do you  think any one will compete to the Indian railway?no one .So only one will invest and only one will get profit  .Hence we can not create competition between Such big Government company.
• Suppose tomorrow if Government will privatized Medical sector ,then for poor people it will be very hard to get treatment as we know private hospitals are only here for earning and poor can not be able to pay  the prices  asked by hospitals for treatment  .Hence only rich people will get treatment.