Q.State the meaning of privatization.

Privatisation is the transfer of ownership, management and control of public-sector undertakings to the private sector, reducing the government's role in economic activity.

Meaning. Privatisation refers to the process of handing over the ownership, management or control of public-sector enterprises to private individuals or companies. It is one of the three components of the LPG reforms (Liberalisation, Privatisation, Globalisation) introduced in India in 1991.

Ways in which privatisation takes place:

• Disinvestment — the government sells a part or whole of its shareholding in a public enterprise to the private sector.
• Transfer of management/control to private hands even where the government retains some ownership.
• Opening up sectors reserved for the public sector to private participation. …