Question

A major criticism of disinvestment was that Public Sector Undertakings (PSUs) were sold at:

Options

• Their fair market value

• Undervalued prices

• Overvalued prices

• Prices determined through open competitive bidding

Answer 1

PSUs were sold at undervalued prices during disinvestment, meaning the government received less than their true worth. This was a central criticism, as public assets were transferred at a loss to the exchequer.