Q.What is privatisation ?

Privatisation is the process of shifting ownership, management or control of a government enterprise to private hands, so that the state's role in production and business shrinks and private efficiency and capital take over.

Under the New Economic Policy of 1991, privatisation formed the 'P' of the LPG (Liberalisation–Privatisation–Globalisation) reforms studied in the Tamil Nadu HSC Class-12 Commerce course.

It can take several forms:

• Disinvestment — the government sells a part or the whole of its shareholding in a public-sector undertaking to private investors.
• Transfer of management/control — even without selling all shares, day-to-day management is handed to private operators.
• Withdrawal of the state from areas reserved earlier for the public sector, opening them to private enterprise. …