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 of the statements given above is/are correct?

1 only

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2 only

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Both 1 and 2

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Neither 1 nor 2

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Solution

The correct option is D
Neither 1 nor 2
Disinvestment in CPSEs was done to :
-raise revenue for the government for investing in profitable PSUs and expanding them and
-exit from loss making PSUs to cut losses further.

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The correct option is D Neither 1 nor 2Disinvestment in CPSEs was done to : -raise revenue for the government for investing in profitable PSUs and expanding them and -exit from loss making PSUs to cut losses further.

The correct option is D
Neither 1 nor 2
Disinvestment in CPSEs was done to :
-raise revenue for the government for investing in profitable PSUs and expanding them and
-exit from loss making PSUs to cut losses further.