The Rangarajan Committee on disinvestment of shares in Public Sector Enterprises suggested that 1 Th...........

Indian Economy Budgeting and Fiscal policy

The Rangarajan Committee on disinvestment of shares in Public Sector Enterprises suggested that

1. The percentage of equity to be divested should be no more than 49% for industries explicitly reserved for the public sector and it should be either 74% or 100% for others.

2. Year-wise targets of disinvestment should be maintained.

Which of the above statements is/are correct?

This questions was previously asked in

EPFO APFC (2015)

View All EPFO Previous Year Papers

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

- The Rangarajan Committee (1993) was focused on strategies for disinvestment in Public Sector Enterprises.

- Statement 1:

- The committee suggested limiting equity divestment to 49% for industries reserved for the public sector.

- For other sectors, it recommended considering divestment levels of 74% or 100%.

- Statement 2:

- While the committee did suggest that disinvestment should be a transparent process, it did not explicitly state that year-wise targets were necessary.

The correct option is Option 1.