Which type of sale allows partial transfer of PSU ownership to private hands?

Correct — A. In a minority sale, the government sells less than half of its equity in a public sector enterprise and keeps majority ownership and control.

Ownership passes to private hands only in part, which is the partial transfer the stem describes → option (a).

Why the others are wrong

• (b)
  Complete sale — A complete sale transfers the whole of the government's ownership. The stem asks for partial transfer, which rules it out.
• (c)
  Auction — An auction is a method of selling that discovers the price, not a type of sale that fixes how much ownership moves. A stake of any size could be auctioned.
• (d)
  Leasing — Leasing hands over the use of an asset for a period while ownership stays with the government. No ownership, partial or full, passes to the lessee.

NCERT defines disinvestment as selling off part of the equity of PSEs to the public. The government's stated aims were financial discipline and modernisation.

Two routes matter here. A minority sale leaves the government in control. A strategic sale hands management control to the buyer.

Key facts

• NCERT defines disinvestment as selling off part of the equity of PSEs to the public.
• In a minority sale the government sells less than half its stake and keeps control.
• In a strategic sale, management control of the enterprise passes to the buyer.
• Disinvestment proceeds are non-debt capital receipts in the Union Budget.

Common traps

• Choosing auction because it sounds like a kind of sale — it is a selling method and says nothing about how much ownership moves.
• Counting disinvestment proceeds as revenue receipts — they are capital receipts.

No directly related past PYQ was found.