- Strategic Disinvestment:
- Specific type of disinvestment.
- Involves selling a substantial stake (up to 50% or more).
- Includes transfer of management control to a strategic partner.
- It is a way of privatization.
- Privatization:
- Broader term.
- Means transfer of business, industry, or service from public to private ownership.
- Can involve full sale of government stake.
- Strategic disinvestment is a form of privatization.
| Feature | Strategic Disinvestment | Privatization |
|---|---|---|
| Scope | Specific type of disinvestment, involves management transfer | Broader term, transfer of ownership/control from public to private |
| Government Stake | Substantial portion (≥50%) transferred with management control | Can be full sale of government stake |
| Relationship | A method or form of privatization | The overarching process of shifting to private sector |