Disinvestment

Disinvestment involves the sale or liquidation of assets or subsidiaries. The disinvestment of public sector undertakings involves selling of PSUs’ assets via public offerings or bidding. Such asset sales can either reduce the government’s share or transfer the ownership to a private entity. This is done to improve efficiency of the PSUs’ functioning and reduce budget deficit. The “disinvestment target” is annually set by the Finance Minister. This year, less than 3% of targeted revenue was generated via disinvestment.