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Consider the following statements about disinvestment.
1. Disinvestment started in India as token disinvestment.
2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.
Which of these statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about disinvestment. 1. Disinvestme...
Disinvestment in India
Introduction:
Disinvestment refers to the sale of shares or assets by the government in public sector companies. It is a process to reduce the government's stake in public sector enterprises.
Statement analysis:
1. Disinvestment started in India as token disinvestment.
This statement is correct. The process of disinvestment in India began in 1991 as a token disinvestment. The government sold minority stakes in some public sector enterprises to raise some extra funds.
2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.
This statement is incorrect. The initial phase of disinvestment did bring some extra funds to the government, but it did not enhance the efficiency of public sector enterprises. In fact, many of the public sector enterprises that were disinvested in the initial phase faced operational challenges and some even had to be closed down.
Conclusion:
Therefore, statement 1 is correct, and statement 2 is incorrect. Disinvestment is an important tool for the government to raise funds and reduce its stake in public sector enterprises. However, it should be done carefully and strategically to ensure that it benefits both the government and the public sector enterprises.
Introduction:
Disinvestment refers to the sale of shares or assets by the government in public sector companies. It is a process to reduce the government's stake in public sector enterprises.
Statement analysis:
1. Disinvestment started in India as token disinvestment.
This statement is correct. The process of disinvestment in India began in 1991 as a token disinvestment. The government sold minority stakes in some public sector enterprises to raise some extra funds.
2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.
This statement is incorrect. The initial phase of disinvestment did bring some extra funds to the government, but it did not enhance the efficiency of public sector enterprises. In fact, many of the public sector enterprises that were disinvested in the initial phase faced operational challenges and some even had to be closed down.
Conclusion:
Therefore, statement 1 is correct, and statement 2 is incorrect. Disinvestment is an important tool for the government to raise funds and reduce its stake in public sector enterprises. However, it should be done carefully and strategically to ensure that it benefits both the government and the public sector enterprises.
Community Answer
Consider the following statements about disinvestment. 1. Disinvestme...
- Disinvestment started in India with a high political caution-in a symbolic way known as the 'token' disinvestment (presently being called as ‘minority state sale”).
- This phase of disinvestment though brought some extra funds to the government (which were used to fill up the fiscal deficit considering the proceeds as the 'capital receipts') it could not initiate any new element to the PSUs, which could enhance their efficiency.
- It remained the major criticism of this type of disinvestment, and experts around the world started suggesting the government to go for it in the way that the ownership could be transferred from the government to the private sector.
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Consider the following statements about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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Consider the following statements about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct 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 about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct 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 about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
Consider the following statements about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct 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 about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct 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 about disinvestment. 1. Disinvestment started in India as token disinvestment.2. The initial phase of disinvestment brought some extra funds to the government and enhanced the efficiency of PSUs dramatically.Which of these statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
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