Assertion: There has been a substantial loss to the government by way of outright sale of public assets in the process of disinvestment.
Reasoning: It has been pointed out that the assets of PSEs have been undervalued and sold to the private sector.
Answer & explanation
Correct answer: option 1
The correct answer is option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Critics have pointed out that the assets of PSEs have been undervalued and sold to the private sector. This means that there has been a substantial loss to the government and the outright sale of public assets!