Ways of Privatisation

Q. Which of the following statements is true regarding the build-operate-transfer (BOT) model?

1. It is facilitated through a contract of two private companies.
2. Sometimes, private companies hold the ownership in this model.
3. The government never takes up the management of the project in the BOT model.
4. There are no provisions of recovering investments by private companies in the BOT model.

Q.

Does Privatisation serve the public interest?

Q. The Government of India is going to disinvest its ownership in one of the government companies. Even after disinvestment, the government will have a minority ownership in that company, but the company itself will be managed by a private party.

Which of the following ways of privatisation is adopted by the Government of India in the above example?

1. Selling ownership to a private player
2. Reserving business operations for private sector
3. Holding the ownership by government while allowing private players to manage it
4. Entering into a public-private partnership

Q. The Government of India gave a contract to a private company to construct a highway. After the construction, the company collected tolls from the passengers for 10 years. The company then transferred the ownership of the highway to the government.

Which way of privatisation is adopted by the government in the above example?

1. Joint venture
2. Selling ownership
3. Public-private partnership
4. Build, operate, and transfer

Q. A company is owned and managed by both the government and the private sector. The profit is shared among them in proportion to the amount invested by each of them.

Identify the arrangement mentioned in the above example.

1. Build, operate, and transfer
2. Public-private partnership
3. Joint venture
4. Collaboration

Q. After 1991, through which of the following methods did the Government of India allow private companies to operate in sectors that were earlier restricted?

1. Reducing the number of sectors reserved only for public sector
2. Public-private partnership
3. Collaboration with private companies
4. Reducing the tax rate on the profits of private companies

Q. One way of privatisation adopted by India was to reduce the number of sectors reserved for the public sector.

How many sectors were reserved for the public sector before and after the new economic policies of 1991?

1. Reduced from 18 to 8
2. Reduced from 10 to 8
3. Reduced from 17 to 8
4. Reduced from 8 to 7

Q. Under which of the following approaches can a private company temporarily own and build a project, recover the cost incurred, and finally hand over the ownership?

1. Build, operate, and transfer
2. Selling ownership
3. Public-private partnership
4. Public auction

Q. Choose the correct pair based on the ways of privatisation.

1. Maruti Suzuki
2. Mumbai Metro
3. Highway tolls
4. Sell ownership
5. PPP
6. BOT

Q. Identify which of the following departments handled privatisation in India in 1991.

1. Department of Finance
2. Department of Disinvestments
3. Department of Public Companies
4. Department of Investment