UPSC Prelims 2011— Question 10

Concept and answer: Option D is correct. Disinvestment is sale of government equity; it did not automatically mean giving up management control, nor was the revenue mainly earmarked for external-debt repayment. The question should be approached by identifying the exact proposition being tested and then checking each alternative against that proposition. A familiar word or related fact is not enough; the option must be completely consistent with the underlying concept. Statement 1 is correct under the verified interpretation. Statement 2 is correct under the verified interpretation. Option A: Incorrect. It omits true statement(s) 2. Option B: Incorrect. It omits true statement(s) 1. Option C: Correct. It selects exactly the valid statement combination and therefore matches the factual and logical requirements of the question. Option D: Correct. It selects exactly the valid statement combination and therefore matches the factual and logical requirements of the question. Exam takeaway: the decisive distinction is the one stated in the core explanation. Option D is the only choice that remains fully consistent with that distinction. This approach is useful for Prelims because many distractors contain a partially true statement but add an incorrect qualifier, reverse a relationship, confuse two institutions, or use an absolute term. Always test the entire option rather than recognizing only one familiar phrase.