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LPG Model (or New Economic Policy) — Economics STD 9 — Question

ICSE BoardEnglish MediumSTD 9EconomicsLPG Model (or New Economic Policy)3 Marks
Question
What is disinvestment? State its objectives.
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Answer

  • Selling off part of equity of public sector enterprises is known as disinvestment.
    OR
  • Disinvestment is a process of selling equities of public sector enterprises.
    Objectives : Disinvestment is done for
    (a) Raising resources to meet budgetary deficit.
    (b) Improving functional efficiency of Public Sector Undertakings (PSUs) in cooperation with private expertise.

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