The person who has taken over the unit has no one to help him in different odd situations. He does not have any exchequer from where he can keep on drawing funds to run the company. And it is not necessary that any private sector party has the capacity to run any type of operation. The private sector has developed sector is at par with international standards. At least someone is making an effort to improve the operation.
Privatisation is no more discretion.
It is a compulsion for every country. It has been evident that if the government drags on for too long, neither the private sector nor government will be able to improve the situation. What is given top consideration now is related to who has bid the highest price. If that is the only consideration then definitely the government will make mistakes. The background and capability of the entrepreneur must also be examined properly before privatisation.