Question

A Public Sector Company is incurring heavy losses and govt. proposes for closing the same. Which term is related to this statement?​

Answer 1

Answer:

Disinvestment. I think

Answer 2

When a Public sector company is incurring heavy losses and the Government proposes for closing the same, the term is known as Disinvestment.

• Definition of Disinvestment

1. Disinvestment means the sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets.
2. The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources.
3. Some of the benefits of disinvestment are that it can be helpful in the long-term growth of the country; it allows the government and even the company to reduce debt.