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Question
What is the primary objective of the Memorandum of Understanding (MoU) system in privatisation?
Options
To immediately sell all PSUs to private investors
PSUs are evaluated on performance targets
To provide unlimited financial autonomy without accountability
To completely eliminate government oversight
MCQ
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Solution
The MoU system is a form of privatisation measure where PSUs are evaluated based on predetermined performance targets. This mechanism introduces performance-based accountability while potentially maintaining government ownership.
shaalaa.com
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