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Question
List three ways in which the government can undertake privatisation.
Answer in Brief
Solution
Following are the ways in which the government can undertake privatization:
- Transfer of the government ownership of productive assets to the private sector. It implies denationalisation.
- Disinvestments, i.e., sale of a part of equity of public sector enterprises to private sector.
- Entry of private sector industries into the exclusively reserved industries for the public sector.
- Limiting the scope of public sector and no further expansion of the existing public sector.
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Privatization of Public Enterprises
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Chapter 6: The State and Economic Development - QUESTIONS [Page 168]
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