UPSC Civil Services Model Paper 7

Disinvestment means the sale or liquidation of assets by the government , usually Central and state public sector enterprises, projects , or other fixed assets .
Main objectives of Disinvestment:
To reduce the fiscal deficit . Hence, Statement 1 is correct.
To meet the budgetary needs .
To improve public finances and overall economic efficiency . Hence, Statement 3 is correct.
To diversify the ownership of PSU for enhancing the efficiency of individual enterprise.
To build competence and strengthen their R & D.
Hence, Statement 4 is correct.
To raise funds for technological up-gradation, modernization, and expansion of PSUs .
To introduce , competition and market discipline.
Hence, Statement 2 is correct.
To fund growth and development programs.
To encourage a wider share of ownership .
To depoliticize non-essential services.
Transfer of Commercial Risks.
To encourage a wider share of ownership.
To depoliticize essential services.
To help public enterprises upgrade their technology to become competitive .
To rationalize and retrain their workforce .