Question

“The strategic sale of a public sector undertaking and the minority sale of its equity are both established instruments of disinvestment.”

Defend or refute, the given statement with valid arguments.

Answer 1

1. I defend the statement. Both methods are valid forms of “disinvestment,” which refers to the dilution of the government’s stake in Public Sector Undertakings (PSUs).
2. A minority sale involves selling a small portion (e.g., 5-10)
3. A strategic sale involves selling a larger chunk of equity (often 50)
4. Since both methods involve the government selling its equity to the private sector, they are both correctly classified as instruments of the broader disinvestment policy.