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UPSC 2011: 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?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (d) Neither 1 nor 2
Disinvestment proceeds were to be routed to the National Investment Fund for capital creation and social expenditure, not earmarked primarily for repaying external debt, so statement 1 is wrong. Government policy in 2011 explicitly stated that in ‘minority stake’ sales it would retain at least 51 % equity and management control of CPSEs, hence statement 2 is also wrong. Therefore, neither statement is correct. ([superkalam.com](https://superkalam.com/upsc-prelims/previous-year-question-paper/2011/why-is-the-government-of-india-disinvesting-its-equity-in-the-central-public-sector-enterprises-cpses-the-government-int-e5dbb17c-470c-4be2-8572-257d21f512bd?utm_source=openai))
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What is the correct answer to this UPSC 2011 Indian Economy question?▼
The correct answer is option (d): Neither 1 nor 2. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Fiscal Policy & Budget question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2011, GS Paper 1, as Question 85. It falls under Indian Economy > Fiscal Policy & Budget.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
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UPSC has asked 44 questions from Fiscal Policy & Budget (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.