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 ?
And this is area privatization and disinvestment will work," he said replying to supplementaries in the Lok Sabha during the question hour.
The Finance Minister said that strategic disinvestment of select CPSEs would continue to remain a priority of this Government.
Healthcare staff must stop providing a service they are accustomed to providing for disinvestment to be successful.
After examining the performance of 12 loss-making PSUs, the committee recommended that the performance of the subsidiaries of loss making state-owned firms should be thoroughly analysed, which would facilitate the government to take a sound decision on their disinvestment or closure of specific units.
In June 2017, the Cabinet Committee on Economic Affairs (CCEA) gave in-principle nod to the strategic disinvestment of the airline, which has a debt burden of over Rs500 billion.
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.
Commercial banks in India are in the race to manage disinvestment by IOC.
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 mentioned that the disinvestment proposal was approved at a cabinet meeting chaired by Prime Minister Manmohan Singh.