Q. With reference to the types of disinvestment in India, consider the following statements:
1.Token disinvestment generally involved sale of a small percentage of government equity without transferring ownership or control.
2.Strategic disinvestment requires the government to retain a minimum of 51% stake in the Public Sector Enterprise.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Token disinvestment involved selling only 5–10% shares, retaining ownership and control with the government.
- Strategic disinvestment reduces the government’s stake to 26% or even below, with at least 51% sold to a strategic partner along with transfer of management control.
Source- 11th NCERT: Economics: Indian Economic Development and TMH Indian Economy by Ramesh Singh
