Question

class 12 project on disinvestment policy

Answer 1

The policy of the government on disinvestment has evolved over a period often years. It started with selling of minority shares in 1991-92 and continues today with emphasis on strategic sale. According to the ministry of Disinvestment, the implementation of the present policy has shown tremendous benefits of privatization to the taxpayers, the economy, the stock market and the employees. We shall briefly review the policy statements made by different governments in the last ten years in a chronological order.

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Answer 2

The disinvestment policy is adopted by the government or business companies to convert certain securities into liquid cash or by selling off some assets

Explanation:

• Government uses the disinvestment policy to bring down their cash deficits because of poor functioning of certain public sector units and to increase the availability of liquid cash in hand. There are many methods which are adopted by the government and companies for the disinvestment policies
• The various methods adopted by them is through a public offer, sale of certain equities, selling the public enterprises or part of the units and more.  The business organisations use the disinvestment  policies for selling off certain assets.
• The disinvestment  policies are adopted by the business and government  enterprises by selling certain percentage of the assets and also hands over the control of the system to them. The disinvestment pricing is based on the market price.

To know more about disinvestment policy

What are the Disinvestment policy of the government?

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