UPSC CSE Prelims
Question 49
Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ?
- The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt.
- The Government no longer intends to retain the management control of the CPSEs.
Which of the statements given above is/are correct ?
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: Government disinvestment can raise resources and diversify public shareholding without necessarily abandoning control; neither asserted blanket motive describes the programme.
Statement / Item-wise Analysis:
1: Incorrect - Incorrect: the proceeds were not earmarked mainly for repayment of external debt.
2: Incorrect - Incorrect: minority-stake sales can leave the government with management control of CPSEs.
Option-wise Analysis:
A: Incorrect - includes unsupported item 1.
B: Incorrect - includes unsupported item 2.
C: Incorrect - includes unsupported items 1, 2.
D: Correct - correctly excludes all the listed statements.