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Question : Which committee recommended the disinvestment of public sector enterprises in India?

 

Option 1: Tarapore Committee

Option 2: Raghuram Rajan Committee

Option 3: Narsimham Committee

Option 4: Disinvestment Commission


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Answer (1)
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Correct Answer: Narsimham Committee


Solution : The correct answer is (c) Narsimham Committee

The Narsimham Committee, also known as the Committee on Financial System Reforms, recommended the disinvestment of public sector enterprises in India. The committee was constituted in 1991 and was chaired by M. Narasimham, a former Governor of the Reserve Bank of India (RBI).

The Narsimham Committee was appointed to provide recommendations for financial sector reforms in India, including the banking sector, capital markets, and public sector enterprises. One of the key recommendations put forth by the committee was the disinvestment of public sector enterprises to promote efficiency, competitiveness, and to reduce the fiscal burden on the government.

The committee highlighted the need to reduce the government's involvement in non-strategic sectors and advocated for the sale of equity in public sector enterprises to the private sector. The objective was to bring in private ownership, management, and market discipline to improve the performance and efficiency of these enterprises.

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