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Consider the following statements.
1. Disinvestment can either reduce the government's share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.
2. Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centre's investments in the PSUs.
3. In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.
Which of the above statements is/are correct?
- a)1 and 2 only
- b)2 only
- c)1 and 3 only
- d)2 and 3 only
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Consider the following statements.1.Disinvestment can either reduce th...
What is disinvestment?
- The Union government invests in several public sector undertakings (PSUs) such as Air India, Bharat Petroleum, Delhi Metro Rail Corporation etc. Since it is the majority shareholder (meaning that it owns more than 51% of the shares), the Centre can raise money through the liquidation of its shareholding in these PSUs.
- Such asset sales can either reduce the government's share — like when it attempted to do with the public listing of Life Insurance Corporation in 2020 — or it can also transfer the ownership of the firm altogether to the highest bidder — as it did with Bharat Aluminium Company, which was sold to the Vedanta group in 2001.
- All PSUs work under different departments and ministries within the government. However, the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the
- Centre's investments in the PSUs. Sale of the Centre's assets falls within the mandate of DIPAM.
Most Upvoted Answer
Consider the following statements.1.Disinvestment can either reduce th...
The correct answer is option 'A' - 1 and 2 only.
Explanation:
1. Disinvestment in PSUs:
Disinvestment refers to the process of reducing the government's ownership in public sector undertakings (PSUs) or transferring the ownership of the PSU altogether to the highest bidder. It is a strategic move by the government to reduce its fiscal burden, promote efficiency, and increase competitiveness in the market.
2. Department of Investment and Public Asset Management (DIPAM):
The Department of Investment and Public Asset Management (DIPAM) is an agency under the Ministry of Finance, Government of India. It is responsible for managing the Centre's investments in the PSUs. DIPAM plays a crucial role in the disinvestment process by formulating policies, implementing disinvestment plans, and undertaking stake sales in PSUs.
3. Inability to meet disinvestment targets:
The statement mentions that in the last five years, the government has been unable to meet the disinvestment target it set at the beginning of the year. This implies that the government has faced challenges in achieving its desired level of disinvestment. It could be due to various factors such as market conditions, investor interest, political considerations, or delays in the disinvestment process.
In conclusion, statement 1 is correct as it explains the concept of disinvestment in PSUs. Statement 2 is correct as it highlights the role of DIPAM in managing the government's investments in PSUs. However, statement 3 is not correct as it suggests that the government has consistently failed to meet its disinvestment targets in the last five years, which may not be a factual statement. Therefore, the correct answer is option 'A' - 1 and 2 only.
Explanation:
1. Disinvestment in PSUs:
Disinvestment refers to the process of reducing the government's ownership in public sector undertakings (PSUs) or transferring the ownership of the PSU altogether to the highest bidder. It is a strategic move by the government to reduce its fiscal burden, promote efficiency, and increase competitiveness in the market.
2. Department of Investment and Public Asset Management (DIPAM):
The Department of Investment and Public Asset Management (DIPAM) is an agency under the Ministry of Finance, Government of India. It is responsible for managing the Centre's investments in the PSUs. DIPAM plays a crucial role in the disinvestment process by formulating policies, implementing disinvestment plans, and undertaking stake sales in PSUs.
3. Inability to meet disinvestment targets:
The statement mentions that in the last five years, the government has been unable to meet the disinvestment target it set at the beginning of the year. This implies that the government has faced challenges in achieving its desired level of disinvestment. It could be due to various factors such as market conditions, investor interest, political considerations, or delays in the disinvestment process.
In conclusion, statement 1 is correct as it explains the concept of disinvestment in PSUs. Statement 2 is correct as it highlights the role of DIPAM in managing the government's investments in PSUs. However, statement 3 is not correct as it suggests that the government has consistently failed to meet its disinvestment targets in the last five years, which may not be a factual statement. Therefore, the correct answer is option 'A' - 1 and 2 only.
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Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer?
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Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer?.
Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1.Disinvestment can either reduce the governments share in the public sector undertakings (PSUs) or transfer the ownership of the PSU altogether to the highest bidder.2.Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centres investments in the PSUs.3.In the last five years, the Government has been unable to meet the Disinvestment target it wanted at the start of the year.Which of the above statements is/are correct?a)1 and 2 onlyb)2 onlyc)1 and 3 onlyd)2 and 3 onlyCorrect answer is option 'A'. Can you explain this answer?.
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