Question
Which of the statements are correct? 1) Process
of disinvestment is very fast 2) Process of disinvestment is very slow and government always falls short of target 3) Government disinvesting its share in various public sector undertakingsSolution
Solution: Government of India is divesting its share from public sector undertakings. Most of government undertakings were incurring losses during the pre-liberalization period. Hence, after the introduction of new economic policy in 1991, government started downsizing its share in PSU. But the process of disinvestment is very slow due to host of legal and political hurdles.
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