Disinvestment refers to the process of the government selling its shares in a public sector undertaking (PSU) or a government-owned company to private entities or the general public. It is aimed at reducing the government's stake in these companies and transferring control and management to the private sector. The correct answer, option B, states that disinvestment involves offloading government shares to private companies.

**Explanation:**

**1. Disinvestment as transferring government shares:**
Disinvestment involves the sale or transfer of government-owned shares in a public sector company to private entities or the general public. By doing so, the government reduces its stake in the company and relinquishes control and management to private players.

**2. Reducing government control:**
When the government owns a significant stake in a company, it often has decision-making power and control over the company's operations. By disinvesting, the government aims to reduce its control and allow private players to take over the management of the company.

**3. Encouraging private sector participation:**
Disinvestment is often seen as a way to encourage private sector participation in various industries. It allows private companies to acquire ownership in government-owned companies, leading to increased efficiency, competition, and innovation in these sectors.

**4. Unlocking value and raising funds:**
Disinvestment can be a means for the government to unlock the value of its shares and raise funds. By selling its shares in a PSU, the government can generate revenue, which can be utilized for various purposes such as infrastructure development, social welfare programs, etc.

**5. Strategic disinvestment:**
In some cases, the government may strategically disinvest from a company to bring in strategic partners who can contribute capital, technology, and expertise. This can help improve the company's performance and competitiveness.

**6. Benefits of disinvestment:**
Disinvestment can have several benefits, including:

- Reducing the burden on the government's fiscal resources.
- Encouraging competition and efficiency in the industry.
- Attracting private investment and expertise.
- Unlocking the value of government assets.
- Promoting economic liberalization and privatization.

In conclusion, disinvestment involves the government selling its shares in a public sector undertaking or government-owned company to private entities. This process reduces the government's control and allows private players to take over the management of these companies. Disinvestment is seen as a way to encourage private sector participation, unlock value, raise funds, and promote economic liberalization. Therefore, option B - offloading of government shares to private companies - is the correct answer.