2016 · Q33
The Rangarajan committee on disinvestment of shares in Public sector enterprises suggested that
- 1The 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.
- 2Year-wise targets of disinvestment should be maintained.
Which of the above statements is/are correct?
Indian EconomyGrowth and sectors
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
Explanation
The Rangarajan Committee (April 1993) recommended disinvestment of no more than 49% of equity in industries explicitly reserved for the public sector, and 74% or 100% in all others — so statement 1 is correct as worded in the official paper (“no more than 49%”). It also recommended that year-wise disinvestment targets be maintained, so statement 2 is correct. The official key for this repeated APFC question is “Both 1 and 2”. Hence (C).