Privatization includes
sale of public enterprises to private sector
disinvestment of public enterprise equity
participation of private sector in management in public sector enterprises
All of the above
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2013
– Statement A, “sale of public enterprises to private sector,” is a direct form of privatization where the government sells the entire enterprise or a majority stake to private owners.
– Statement B, “disinvestment of public enterprise equity,” refers to the government selling a portion of its shares in a public sector undertaking (PSU) to the private sector or the public. While the government may retain majority control in some disinvestment cases, it is still considered a step towards privatization or marketization by reducing state ownership.
– Statement C, “participation of private sector in management in public sector enterprises,” includes arrangements like management contracts, leases, or joint ventures where the private sector takes significant managerial control, even if full ownership is not transferred. This is also a form of privatization as it reduces direct government management.
– Since all three statements describe different facets or forms of privatization, “All of the above” is the correct answer.