Question

As per a news report dated 8th Oct. 2021, the Government of India sold its entire 100% stake in Air India. Tata Sons, the original founder of Air India, won the bid and purchased the airline for ₹ 18,000 crore.

1. Identify the step taken by the Government of India. [1]
2. State any two ways in which identified step can be executed by the government. [2]

Answer 1

1. The Indian government is taking the step of privatization or disinvestment, which means a planned sale.
2. The privatisation can be done in the following ways:
   1. PSU ownership and management will be transferred from the government to the private sector.
   2. By selling off a portion of PSU shares to the public or private sector. This process is referred to as disinvestment.