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?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Disinvestment of a percentage of shares owned by the Government in public undertakings emerged as a policy option in the wake of economic liberalisation and structural reforms launched in 1991.
The correct option is D.