The paper discusses the various forms of privatisation, its rationale, practices in India and abroad, and the issues facing the privatisation programme. It concludes that while privatisation programme is not easy to design and implement, it has good potentials to resolve economic ills of public sector enterprises (PSEs). Many countries have used this strategy with good results and if there is a strong political will, India could also derive benefits through this programme. The paper offers a few suggestions for the successful implementation of this programme.