Question

Q. Consider the following statements with respect to Disinvestment operations:

Which of the statements given above is/are correct?

• A.
  1 only
• B.
  1 and 3 only
• C.
  2 only
• D.
  2 and 3 only

Answer 1

The correct option is B

1 and 3 only
Explanation:

Statement 1 is correct: Selling more than 50% of its equity share by the government in any firm is termed as Strategic disinvestment. It leads to giving up management control by the government and promotes privatization.

Statement 2 is incorrect: Proceeds of disinvestment goes to the National Infrastructure Fund (NIF) which is kept outside Consolidated Fund of India (CFI) and forms part of the Public Account.

Statement 3 is correct: Non debt capital receipts (NDCR) of the union government include:

• Recoveries of loans and advances given to state governments, Union territories and foreign governments
• Disinvestment proceeds
• Money accrued to the Union government from listing of central government companies and issue of bonus shares.