What is the need for privatisation …

Improved Efficiency: State-run companies are predominantly influenced by political intentions rather than economic well-being. It hinders the efficiency of public sector companies and prevents growth. Privatization deters government influence and aids economic growth. As private bodies do not have a political agenda, they focus more on spurring growth and efficiency within an organization for a greater generation of revenues. Increased Competition: State-run companies enjoy a monopoly and remain  undisturbed by competition in the market. Privatization, accompanied by deregulation of the market, allows the private sector to engage more actively and encourages competition. The competition will, in turn, accelerate overall industrial and economic growth and protect the market against monopolistic sluggishness.  Promotes Market Dynamism: Privatization liberates the economy from state control. Without government regulations dictating market progression, the market operates organically. Due to a lack of government interference, the market becomes more dynamic and follows integral economic values of demand and supply. Consumer response to a more dynamic and organically run market is greater and generates higher revenues.  Revenue from the Sale of a Company: A primary objective of privatization is a one-time revenue generation for the government. Several governments have previously resorted to privatization when facing a fiscal crisis.