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Consider the following statements: 1. Greenfield Privatization or Incremental Privatization denotes encouragement to private sector in areas hitherto reserved for Public Enterprises 2. Cold Privatization refers to measures taken to distance Public Enterprises from the Government Which of the above statements is / are correct?

Consider the following statements: 1. Greenfield Privatization or Incremental Privatization denotes encouragement to private sector in areas hitherto reserved for Public Enterprises 2. Cold Privatization refers to measures taken to distance Public Enterprises from the Government Which of the above statements is / are correct? Correct Answer Both 1 and 2

The correct answer is option 3 i.e Both 1 and 2

Explanation:

Greenfield Privatization or Incremental Privatization

  • It denotes encouragement to private sector in areas hitherto reserved for public sector.
  • Not allowing new investment on part of public sector agencies.
  • Preferential treatment given to public sector.

Cold Privatization

  • The concept of Memorandum of Understanding (MOU) is also referred to as Cold Privatization. 
  • It means measures taken to distance public enterprises from Government.
  • It means granting greater autonomy to Public Enterprises by making them sign Memorandum of Understanding in order to distance them from the Government. 

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