The sale by the government of part or all of its equity in a public-sector enterprise, to raise resources and improve efficiency.
- Minority disinvestment keeps government control (sale of a minority stake); strategic disinvestment transfers management control to a private buyer (more than 50 percent or a controlling stake).
- Managed by the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance.
- Routes include public offers (IPO, FPO, OFS), the exchange-traded fund (ETF) route (for example Bharat 22), and strategic sales.
- Objectives: reduce the fiscal burden, deepen capital markets, and bring private efficiency; proceeds help finance the concept fiscal deficit.
- "Privatisation" usually means a strategic sale that hands over control; full disinvestment of a viable enterprise is debated for selling "family silver"; verify the latest targets and proceeds.
Disinvestment, DIPAM, and the strategic-versus-minority distinction are recurring industry and fiscal-policy items, often linked to the Budget.
Minority disinvestment (government keeps control) versus strategic disinvestment or privatisation (control transferred); disinvestment is a capital receipt, not tax revenue.
Government sale of PSU equity (minority or strategic) managed by DIPAM; proceeds help the fiscal deficit.