Q. . Consider the following statements with reference to Disinvestment in India:
1.The Indian government employed the “Minority Stake Sale” approach as part of its disinvestment policy for Air India last year.
2.The Bureau of Asset Management and Public Finance (BAMPF) oversees the disinvestment process.
3.The proceeds from disinvestment of Central Public Sector Enterprises are directed to National Investment Reserve (NIR)..
How many of the above statements are correct?
Explanation –
Statements 1, 2 and 3 are incorrect. There are three different types of disinvestment policies in India: minority stake sale, strategic disinvestment, and closure of non-viable PSUs.
Minority stake sales involve the government selling a portion of its holdings in public sector enterprises (PSEs) to private investors. In recent years, such sales have been executed for major PSUs like Coal India, ONGC, and Indian Oil Corp.
Strategic disinvestment involves selling of more than 50% of government shares in a public enterprise. It also includes the transfer of managerial control from the government to the private shareholder. In recent years, this approach was taken for PSUs like Air India, Bharat Petroleum Corp, and Shipping Corp of India.
Closing non-viable PSUs is the process of shutting down unprofitable public sector enterprises that show no prospects of future profitability. In recent years, the government has ceased operations of non-viable PSUs like Scooters India and Hindustan Photo Films Manufacturing Company.
The Department of Investment and Public Asset Management (DIPAM) oversees the disinvestment process, operating under the Ministry of Finance.
The proceeds from disinvestment of Central Public Sector Enterprises are directed to National Investment Fund (NIF).
Source: ForumIAS
