The Hindu Business Line : Timely reminder

This is with reference to “Pause before divesting” (Business Line, June 26). Divestment is a policy that has both economic advantages and disadvantages.

But in the current scenario of an all-round depression, this is not the right time to think of divestment.

Divestment, in effect, would put the pricing of the product in the hands of the market forces and it would be left to the whims of the major units to control the pricing structure.

The smaller units would find it difficult to compete with the major ones. Pricing, dictated by considerations of profit, may work to the serious disadvantage of the consumer also.

Therefore, the government would do well to examine the various pros and cons carefully before taking any decision on divestment as a policy.

T. R. Anandan Chennai

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