disinvestment


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Disinvestment

A reduction in capital investment reflected by a decrease in capital goods and a company's decision not to replace depleted capital goods.

Disinvestment

The sale or elimination of a department, subsidiary, or any other major investment. Disinvestment is most common when a company must raise capital quickly to finance new operations or pay a certain liability, or when it determines that the investment is unlikely to become or remain profitable in the future.

disinvestment

Divestiture, liquidation, or sale of a segment of a firm. Disinvestment may occur for a number of reasons including a poor outlook for a particular line of business or a firm's need to raise additional capital for other more promising segments of its business.

disinvestment

  1. 1a decrease in a country's CAPITAL STOCK that occurs when there is insufficient new INVESTMENT to cover CAPITAL CONSUMPTION/DEPRECIATION

    (capital lost because of wear and tear).

  2. the sale or closure by a firm of part of its business. See DIVESTMENT.
References in periodicals archive ?
As per the disinvestment policy, the Government has approved listing of 14 CPSEs in sectors like railways, defence, power, steel, renewable energy & insurance.
Kant said, "NITI Aayog has already recommended 40 sick PSUs for strategic disinvestment.
Last year, the Union Cabinet gave its in-principal approval for disinvestment of Air India and constituted an inter-ministerial group to chalk out the strategy for its stake sale.
As in the case of several other CPSEs, employee protests and ongoing litigations were the major hurdles before the disinvestment of its assets.
The government has set a disinvestment target of Rs 56,500 crore for this fiscal.
The government is looking for a disinvestment of 191.
The Government started to deregulate the areas of its operation and subsequently the disinvestment in public sector enterprises was announced.
However, the recent sale of Hindustan Copper shares has given more a kick than a start to the process of disinvestment.
It was also reported earlier that the company was facing financial difficulties and the disinvestment proposal was forwarded to the cabinet by Heavy Industries and Public Enterprises Minister Praful Patel.
Last week, disinvestment secretary Sumit Bose had said that Engineers India disinvestment is likely to take place by the middle of July.
While Unite/CPHVA welcomed the investments made in children's centres, it highlighted disinvestment in the health visiting service.
Summary: After several deaths and rebirths, disinvestment is back as a big-ticket reform.