Question

Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)?1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.2. The Government no longer intends to retain the management control of the CPSEs.Which of the statements given above is/ are correct?(a) 1 only(b) 2 only(c) Both 1 and 2(d) Neither 1 nor 2

Answer 1

Answer:

The correct option for this question is option D.

Explanation:

According to Option D, none of the statements, 1 or 2, are true. None of there apply to the given statement that, "why the government of India is dis investing its equity in the Central Public Enterprises?

-Because no, the reason is not that the government intends to use this revenue earned to pay back external debt

- Because no, the reason is not that the government no longer intends to retain the management control of CPSE's.

CPSE's, these are the public sectors in India.

Disinvestment of a percentage of shares owned by the Government in public undertakings came about as a policy option during the economic liberalisation and structural reforms launched in 1991 in India.