Privatisation of the public sector enterprises by selling off part of the equity of PSEs to the public is known as:

Correct option is C

The correct answer is (C) disinvestment.

Explanation:
Disinvestment is the process where the government sells part of the equity in public sector enterprises (PSEs) to the public or private investors. It is primarily done to reduce the fiscal burden on the government and to promote the involvement of the private sector in public enterprises.

Information Booster:

• Disinvestment is part of a broader economic strategy that aims to reduce government control in certain sectors and encourage greater private sector participation in the economy.

• Ministry:

  • The Ministry of Finance, Government of India, handles disinvestment-related matters.

• Current Minister (2025):

  • Nirmala Sitharaman is the Minister of Finance in 2025.

• Important Date:

  • The concept of disinvestment gained momentum during the 1990s economic reforms in India, marking a shift towards liberalization and privatization.

Additional Information:

• Commercialisation:

  • Refers to the process of managing an activity for profit, not related to the selling of public sector equity.

• Modernisation:

  • Refers to the process of upgrading systems or infrastructure, not related to the selling of public sector assets.

• Outsourcing:

  • Refers to contracting out services or tasks to external organizations, unrelated to disinvestment.