Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs)? 1. T…
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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?
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• Correct Answer: D
• Disinvestment proceeds fund social sector programs and fiscal deficit, not mainly external debt.
• Government often retains 51% equity and management control; strategic sale is case-specific.
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