Disinvestment is the process of selling government shares in a public sector enterprise to private companies. It involves reducing the government's ownership and control over a company by transferring the shares to private entities. This policy is usually adopted by governments to promote economic growth and efficiency by encouraging private sector participation in various industries.

Explanation:

1. Definition of Disinvestment:
Disinvestment refers to the process of selling government shares in a public sector enterprise to private companies.

2. Offloading of Government Shares:
In disinvestment, the government sells its shares in public sector enterprises to private companies. This reduces the government's ownership and control over the company, allowing private entities to take a larger stake.

3. Objectives of Disinvestment:
The primary objective of disinvestment is to promote economic growth and efficiency by encouraging private sector participation in various industries. It aims to achieve the following:

- Attract private investment: Disinvestment attracts private investment and capital into sectors that were previously dominated by the public sector. This can lead to increased competition, improved efficiency, and better utilization of resources.

- Improve corporate governance: With private companies acquiring shares in public sector enterprises, there is a greater emphasis on corporate governance and accountability. Private companies bring in professional management practices, which can lead to better decision-making and performance.

- Reduce fiscal burden: Disinvestment helps the government reduce its fiscal burden by reducing its ownership and control over public sector enterprises. The government can use the proceeds from disinvestment to fund various development projects or reduce its debt burden.

- Unlock value: Disinvestment allows the government to unlock the value of its investments in public sector enterprises. It provides an opportunity to monetize assets and generate revenue that can be used for other purposes.

4. Impact of Disinvestment:
Disinvestment can have several positive impacts:

- Increased efficiency: Private sector participation can lead to increased efficiency and productivity in public sector enterprises. Private companies bring in expertise, technology, and market-driven approaches that can enhance the performance of these companies.

- Market development: Disinvestment can contribute to the development of capital markets by increasing the number of listed companies and improving market liquidity. It provides an opportunity for individual and institutional investors to participate in the growth of these companies.

- Employment generation: Disinvestment can stimulate economic growth and employment generation by attracting private investment and promoting competition. Private companies often bring in new technologies and business models, leading to job creation and skill development.

- Resource allocation: Disinvestment allows for better allocation of resources by transferring ownership and control to private companies. It enables the government to focus on its core functions while leveraging the expertise and resources of the private sector.

In conclusion, disinvestment is the process of selling government shares in public sector enterprises to private companies. It aims to promote economic growth, improve efficiency, reduce the fiscal burden, and unlock the value of government investments. By attracting private investment and encouraging competition, disinvestment can lead to increased efficiency, market development, employment generation, and better resource allocation.