{"id":31074,"date":"2023-09-02T04:16:22","date_gmt":"2023-09-01T22:46:22","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=31074"},"modified":"2025-04-16T08:55:10","modified_gmt":"2025-04-16T03:25:10","slug":"strategic-disinvestment","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/strategic-disinvestment\/","title":{"rendered":"What is Strategic Disinvestment?"},"content":{"rendered":"<h2><strong>About Strategic Disinvestment<\/strong><\/h2>\n<ul>\n<li>Strategic disinvestment would imply the\u00a0<strong>sale of a substantial portion of the Government shareholding of a central public sector enterprise (CPSE) of upto 50%,<\/strong>\u00a0<strong>or such higher percentage\u00a0<\/strong>as the competent authority may determine,\u00a0<strong>along with transfer of management control.<\/strong><\/li>\n<li>It involves the\u00a0<strong>transfer of ownership and control of a public sector entity to some other entity, either private or public.<\/strong><\/li>\n<li><strong>What is the difference between strategic disinvestment\/sale and disinvestment?<\/strong>\n<ul>\n<li>S<strong>elling minority shares of Public Enterprises to another entity,\u00a0<\/strong>be it public or private,\u00a0<strong>is disinvestment.\u00a0<\/strong>In this, the\u00a0<strong>government retains ownership\u00a0<\/strong>of the enterprise.<\/li>\n<li>On the other hand,\u00a0<strong>when the government sells majority shares in an enterprise<\/strong>,\u00a0<strong>that is strategic disinvestment\/sale.<\/strong> Here, the\u00a0<strong>government gives up the ownership\u00a0<\/strong>of the entity as well.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Objectives:<\/strong>\n<ul>\n<li><strong>Reduce Government Ownership<\/strong>;<\/li>\n<li><strong>Raise Capita<\/strong>l;<\/li>\n<li><strong>Improve Efficiency;<\/strong><\/li>\n<li><strong>Promote Competition<\/strong>;<\/li>\n<li><strong>Attract Private Investmen<\/strong>t;<\/li>\n<li><strong>Focus on Core Functions;<\/strong><\/li>\n<li><strong>Reduce Fiscal Burden<\/strong>;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What is a public sector enterprise?<\/h3>\n<p>Public enterprise, a business organization wholly or partly owned by the state and controlled through a public authority. Some public enterprises are placed under public ownership because, for social reasons, it is thought the service or product should be provided by a state monopoly. Utilities (gas, electricity, etc.), broadcasting, telecommunications, and certain forms of transport are examples of this kind of public enterprise.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindubusinessline.com\/economy\/dipam-invites-rfp-to-appoint-an-asset-valuer-for-idbi-banks-strategic-disinvestment\/article67260593.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>DIPAM invites RFP to appoint an asset valuer for IDBI Bank\u2019s strategic disinvestment<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Strategic disinvestment involves the transfer of ownership and control of a public sector entity to some other entity, either private or public.<\/p>\n","protected":false},"author":5,"featured_media":31075,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-31074","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31074","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=31074"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/31074\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/31075"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=31074"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=31074"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=31074"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}