The correct answer is Disinvestment. Explanation & Key Takeaways: • Privatization through sale of equity by public sector enterprises to the general public is called Disinvestment. • Disinvestment • It means the sale or liquidation of assets by the government, usually Central and state public sector enterprises, projects, or other fixed assets. • Government receipts which either (i) create liabilities (e.g. borrowing) or (ii) reduce assets (e.g. disinvestment) are called capital receipts. • Thus, when govt. raises funds either by incurring liability or by disposing of its assets, it is called a capital receipt. • The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. • Strategic disinvestment is the transfer of the ownership and control of a public sector entity to some other entity (mostly to a private sector entity). • The Disinvestment Commission defines strategic sale as the sale of a substantial portion of the Government shareholding of a CPSE of up to 50%, or such higher percentage as the competent authority may determine, along with transfer of management control. • The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is the nodal department for the strategic stake sale in the Public Sector Undertakings (PSUs).