Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ?
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 the correct statements given above is/are correct ?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
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(d) When we say “Mainly” the money is to be used to pay the external debt, it is not correct to say so. Government though “may intend” to retain the management control, but there are fiscal constraints, that induce the government to go for disinvestment. Both statements are NOT correct.
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