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.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

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! Moreover, the proceeds from disinvestment are used to offset the shortage of government revenues rather than using it for the development of PSEs and building social infrastructure in the country.