The industrial revolution in the 18 th century has segmented many countries into developed, developing and least developing countries considering the wave and the intensity of industrialization phenomena. Government of the different countries have played an instrumental role in transforming the country's economy through undertaking the job of businessman wherein heavy industries recommended for energy, infrastructure and telecommunication were majorly controlled by the government. India too followed the footsteps of Russia tailor-made to mixed economy culture where private and public both participated in the industrialisation process during different plan period. The concept coined as CPSE now is under the quagmire of political consideration for divesting due to poor performance after the landmark year 1991. The paper attempts to focus on various issues pertaining to PSEs once known to be temples of modern India, now struggling for their sustainability either through self-obligation or through disinvestment in Global perspective.

This paper examines the paradox of the diminishing institutional role of large central public sector enterprises despite rising profitability and investment as a result of their being efficient competitors in the new market environment. Under the neo-liberal regime of the last two decades, these CPSES, with large cash balances and improved profitability, have emerged as the main drivers of public savings and investment. But instead of enhancing their strategic role, the union government has been treating them as cash cows. A comparison of the performance of large private and public sector firms in the manufacturing sector shows that the CPSES have provided higher returns on capital employed. And, performance in terms of technical parameters is in no way inferior to that of their private counterparts. Yet the

This paper examines the paradox of the diminishing institutional role of large central public sector enterprises despite rising profitability and investment as a result of their being efficient competitors in the new market environment. Under the neo-liberal regime of the last two decades, these CPSES, with large cash balances and improved profitability, have emerged as the main drivers of public savings and investment. But instead of enhancing their strategic role, the union government has been treating them as cash cows. A comparison of the performance of large private and public sector firms in the manufacturing sector shows that the CPSES have provided higher returns on capital employed. And, performance in terms of technical parameters is in no way inferior to that of their private counterparts. Yet the Modi government intends to either privatise these CPSES or sell a significant part of their equity shares, a decision that is devoid of both strategic and business sense.

Privatisation refers to transfer of ownership and/or management of an enterprise from the public sector to the private sector.Privatisation is associated with better results in terms of cost and quality of services. It achieves these results by replacing government monopolies with the competitive pressures of the marketplace to encourage efficiency, quality & innovation in the delivery of goods & services.The study aims to discuss opportunities as well as challenges that may occur as a result ofprivatisation. It further intends to analyse the impact of privatisation on the economic developmentof India.The study concludes that privatization is required for rapid growth in economy. It has been noticed that government is focusing on maintaining law and order in the country and also taking care of national security seriously. Doing business profitably has been left for the private sector, therefore, it can be said that future belongs to privatization.