Question

Do you agree or disagree with the following statement? Give reasons:

Government has given private enterprises free access to public sector.

Options

• Agree

• Disagree

Answer 1

Yes, I agree with this statement.

Reasons:

1. By disinvestment, the government sells shares of sick public sector units to the private sector. For example, disinvestment of Maruti, VSNL, etc.
2. By dereservation policy, private enterprises have given free access to the public sector except for railway transport and atomic energy.
3. During 1997-98, nine public sector units were selected and were given the status of Navratnasa and were given Financial and managerial autonomy, for example, Oil and Natural Gas Limited (ONGC), Bharat Heavy Electrical Limited (BHEL). Thus, the government has given private enterprises free access to the public sector.