Like many other developing countries, India has evolved from precapitalist from into a mixed economy. The programmes of large scale industrialisation adopted by the government evern since the beginning of the second five year plan have helped the economic in coming out of the low-level equilibrium trap and introduced many significant structural changes. The industrial sector was plagued by stagnnation and retrogression for full two decades, i.e. from 1965 to 85, the industrial licensing policy failed in achieving its objectives; The public sector has failed to utilise its resources properly leading to substantial under-utilization of capacity and colossed wastage of resources, etc. In the light of these issues, the government of India launched the new indus-trial policy 1991. One of the thrust areas of the policy is disinvestment. The present policy of disinvesting is initially in small fractions in public enterprises and joint venture to meet the budgetary deficity and for rechannalisation into new industrial activities, it is like selling the family silver to have a good time.