Statement 1 is incorrect: The revenue earned from disinvestment is not "mainly" used to pay back external debt. Historically, these proceeds were funneled into the National Investment Fund (NIF), where 75% was used for social sector schemes (like health and education) and 25% for the capital requirements of CPSEs. In recent years, disinvestment proceeds have been used to bridge the fiscal deficit and fund large-scale Capital Expenditure (Capex) in infrastructure. India's external debt is relatively small compared to its internal debt, and specific earmarking for external debt repayment is not a policy objective of disinvestment.

Statement 2 is incorrect: This is a broad generalization that ignores the distinction between types of disinvestment. In Minority Disinvestment, the government sells a portion of its shares but retains at least 51% equity and full management control.

Under the New PSE Policy (2021), CPSEs are divided into Strategic and Non-Strategic sectors. In strategic sectors (like Atomic Energy, Space, and Defense), the government intends to maintain a "bare minimum" presence, meaning it does intend to retain control in certain key areas. Management control is only transferred in cases of Strategic Disinvestment or privatization.