Privatisation connotes a wide range of ideas. In generic terms it refers to the process of transfer of ownership from public ownership to private entity.
There are largely three variants in privatisation process, transfer of ownership of public enterprises, fully or partially, lead to privatisation through ownership measures; management transfer with opening the market for joint ventures, policies for denationalisation and liquidation of public enterprises; and inject the spirit of commercialisation and market discipline in public enterprises.
One of the main features of privatization is the enhanced competitiveness among enterprises that may prove to be fruitful for the business as well as to the economy.
In India, privatization got tremendous boost by the introduction of new economic policy in 1991 that allowed reduced entry restriction and opened up market for private players.