This paper outlines the public enterprise (PE) policy of India and comments briefly on their performance. The paper then presents a brief chronology of the evolution of the Government Policy on disinvestment, describes the various methods of privatisation and examines their suitability in the Indian backdrop. This is fol1owed by a critical review of the practices adopted in the Indian context relating to the methods of privatisation. Some case studies have been incorporated to show the impact of the methods of privatisation on the post-privatisation performance of the privatised enterprises. Final1y, the paper offers a few suggestions for the deployment of appropriate methods of privatisation to derive the maximum benefit from the privatisation programme launched by India.