Disinvestment means the sale or liquidation of assets by the government , usually Central and state public sector enterprises, projects , or other fixed assets . Main objectives of Disinvestment: To reduce the fiscal deficit . Hence, Statement 1 is correct. To meet the budgetary needs . To improve public finances and overall economic efficiency . Hence, Statement 3 is correct. To diversify the ownership of PSU for enhancing the efficiency of individual enterprise. To build competence and strengthen their R & D. Hence, Statement 4 is correct. To raise funds for technological up-gradation, modernization, and expansion of PSUs . To introduce , competition and market discipline. Hence, Statement 2 is correct. To fund growth and development programs. To encourage a wider share of ownership . To depoliticize non-essential services. Transfer of Commercial Risks. To encourage a wider share of ownership. To depoliticize essential services. To help public enterprises upgrade their technology to become competitive . To rationalize and retrain their workforce .