VARC Test - 11

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.

Direction: Read the passage given below and answer the following questions.

The government had revealed the broad contours of the policy in May 2020 as part of the Atmanirbhar Bharat package unveiled in the initial stages of the COVID-19 pandemic. The strategic sectors identified at the time for retaining certain public sector entities within the government’s control remain the same in the final policy approved by the Cabinet. These are atomic energy, space and defence, transport and telecommunications, power, petroleum, coal and other minerals, and lastly, banking, insurance, and financial services. While the initial plan was to retain one to four public sector firms in these sectors, this has now been replaced by the phrase “bare minimum presence”. Once the government decides what is the bare minimum number of firms it wants to retain, the rest of the firms will be privatized, merged, or subsidized with other CPSEs, or closed. For all firms in sectors considered non-strategic, privatization or closure are the only two options being considered. The policy’s objective is to minimize the public sector’s role and create new investment space for the private sector, in the hope that the infusion of private capital, technology, and management practices will contribute to the growth and new jobs. The proceeds from the sale of these firms would finance various government-run social sector and developmental programs.

This is the first time since 2004 that India is working on a slew of privatization deals. Earlier, the Atal Bihari Vajpayee government between 1999 and 2004 had managed to sell off majority stakes in dozen-odd public sector enterprises, including Modern Foods, Balco, Hindustan Zinc, VSNL, and a few hotels. A separate Ministry had been formed just for disinvestment, led initially by the late Arun Jaitley and then by Arun Shourie, who drove the process.

An attempt to sell Air India at the time had, however, got stalled in the face of a political outcry. Prior that, the early 1990s saw the stock market listing /(a) of minority stakes in a bunch of public /(b) sector firms, a policy that was replayed when /(c) the UPA government was in office from 2004 to 2014./(d) The new policy goes beyond the Vajpayee-era privatization drive, which was limited to a ‘case-by-case’ sale of entities in non-strategic sectors, by stressing that even strategic sectors will have a ‘bare minimum’ presence of government-owned firms.

The NITI Aayog has been entrusted to suggesting which public /(a) sector firms in strategic sectors should be retained, considered /(b) for privatization or merger or ‘subsidization’ /(c) with another public sector firm, or simply closed./(d) A core group of secretaries on disinvestment will consider the NITI Aayog’s suggestions and forward its views to a ministerial group. Apart from the Finance Minister, the group will include Road Transport and Highways Minister Nitin Gadkari and the minister in charge of the administrative ministry of the public sector enterprise concerned. After the ministerial group’s nod, the Department of Investment and Public Asset Management in the Finance Ministry will move a proposal to the Cabinet Committee on Economic Affairs for an ‘in-principle nod to sell specific CPSEs. The NITI Aayog is expected to soon formalize its recommendations on which of the 77 public sector companies in strategic sectors should remain with the government.

The turmoil in the global economy could impact the valuations of firms being privatized, as many potential investors may not have the appetite for bidding in these times. The prospect of post-deal scrutiny by audit and investigating agencies, like the CAG (Comptroller and Auditor General of India) and the CBI, will be a source of worry for officials, with similar cases pertaining to the Vajpayee-era transactions still cropping up in courts. Privatization is a good idea, but doing it during a recession may ______ economic recovery as investors will end up buying existing capacities instead of _______ on fresh investments.