With reference to Disinvestment in India, consider the following statements:

1. Strategic Disinvestment involves the sale of at least 50% or more stake along with management control to private entities.

2. The proceeds from disinvestment of Central Public Sector Enterprises are credited to the National Investment Fund.

3. The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is responsible for formulating and implementing disinvestment policies in India.

How many of the above statements above is/are correct?

The correct answer is All three.

Key Points

• Disinvestment, also known as divestment, is the process of selling or liquidating assets or subsidiaries by governments or organizations, often to reduce their financial burden or reallocate resources. 
• Strategic Disinvestment refers to the sale of 50% or more stake along with transfer of management control to private entities. It is different from minority stake sales, where the government retains control. Hence Statement 1 is correct
• Government had constituted the National Investment Fund (NIF) in November, 2005 into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized. The corpus of NIF was to be of a permanent nature and NIF was to be professionally managed to provide sustainable returns to the Government, without depleting the corpus. Hence Statement 2 is correct
• The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is responsible for framing and implementing disinvestment policies in India. Hence Statement 3 is correct