Question

In most of the Indian states, road transport corporation and water transport corporations arethe important public sector undertakings. The respective governments invest huge amount of money in these corporations but often they fail to make the desired profits. Privatisation can bethe best way to reduce the expenditure of the government. But why do these services still remain in public sector?
(a) No private sector companies are interested to invest in these activities.
b) The private sector may not provide these services at a reasonable cost.
c) These are basic services which can never be privatized.
(d) The employees in these corporations do not allow the government to privatizethem​

Answer 1

Answer:

b) The private sector may not provide these services at a reasonable cost.

Explanation:

Some basic services like electricity, water, etc are provided by the public govt. at subsidised rates. In these cases, the government bears the burden of losses caused in shipment and other tertiary facilities. On the other hand, private companies are cost driven and in order to maxminise their profit, they resort to increasing costs of these services.