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Which of the following is the objective of 'disinvestment in the public sector
Undertakings?
  • a)
    Improve corporate governance
  • b)
    Realize the productive potential of PSUs through improved efficiency and profitability
  • c)
    Reducing public debt
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following is the objective of 'disinvestment in the publ...
Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary.
The term' disinvestment' is used to indicate the process of privatization. The primary objectives of disinvestment are:
  • Releasing the large number of public resources locked up in non- strategic PSEs, for redeployment in areas that are much higher on the social priority, such as basic health, family welfare, primary education and social and economic infrastructure;
  • Stemming further outflow of these scarce public resources for sustaining the unviable non- strategic PSEs;
  • Reducing the public debt; Transferring the commercial risk to the private sector wherever the private sector is willing and able to step in;
  • Releasing other tangible and intangible resources, such as large manpower currently locked up in managing PSEs, and their time and energy, for redeployment in high Priority social sectors that are short of such resources.
  • Improve corporate governance.
  • Realize the productive potential of CPSEs through improved efficiency and profitability.
  • CPSE's wealth should rest in the hands of the people.
  • Raise resources for the government.
Therefore the correct answer is (d).
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Which of the following is the objective of 'disinvestment in the public sectorUndertakings?a)Improve corporate governanceb)Realize the productive potential of PSUs through improved efficiency and profitabilityc)Reducing public debtd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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