85)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?
Answer: Option D
According to the disinvestment policy, government will retain the majority shareholding in PSE is to be disinvested. The proceeds of disinvestment are to be used to fund selected social sector schemes and to finance capital investment requirements of viable PSEs
Hence option D is correct.