Why is the Government of India disinvesting its equity in the Central Public Sector Enterprises (CPSEs) ? 1. The Government intends to use the revenue earned from the disinvestment mainly to pay back the external debt. 2. The Government no longer intends to retain the management control of the CPSEs. Which of the statements given above is/are correct?

1. Disinvestment refers to the Government of India selling its equity stake in Central Public Sector Enterprises (CPSEs). The objectives typically include raising resources for the budget, improving enterprise efficiency, encouraging wider public ownership, and unlocking the value of these enterprises. 2. Statement 1 is incorrect: The revenue earned from disinvestment is generally channeled into the National Investment Fund (or used for specific budgetary purposes like funding social sector schemes, infrastructure, or reducing the fiscal deficit). While debt reduction might be a secondary effect of managing the fiscal deficit, using the funds *mainly* to pay back external debt has not been the primary stated objective of the Government's disinvestment policy. 3. Statement 2 is incorrect: The Government's intention regarding management control varies. In cases of minority stake sales, the Government explicitly retains management control. Only in strategic disinvestment does the Government transfer control. To state that the Government *no longer intends* to retain control of *the* CPSEs (implying a general policy across all or most) is inaccurate. The Government continues to hold and manage many CPSEs. 4. Therefore, neither statement provides the correct or complete reason for the Government's disinvestment actions.