What is the difference between privatization and disinvestment?

Loss-making national carrier Air India was privatized last year. And the government is going ahead with LIC disinvestment this year. Find out the difference between these two terms

The government sold Air India to the Tata group for Rs 18,000 crore last year. It got just 15% of the total amount while the rest went to the debtors. The Centre had been trying to offload its entire stake in the airline for years.

And after the nod of the Cabinet Committee on Economic Affairs, the government is now taking LIC to the primary market to divest some of its stakes. The government says that it just wants to go for an IPO and not for privatisation.

We have also heard our Prime Minister Narendra Modi saying that, “The government has no business being in business”. So the government’s intentions on privatisation and disinvestment are…read more