What strategy did the government adopt for the public sector in the New Industrial Policy of 1991?

Planned disinvestments of the public sector

The new set of economic reforms aimed at giving greater role to the private sector in the nation building process and a reduced role to the public sector. This was a reversal of the development strategy pursued so far by Indian planners. To achieve this, the government redefined the role of the public sector in the New Industrial Policy of 1991, adopted the policy of planned disinvestment of the public sector and decided to refer the loss making and sick enterprises to the Board of Industrial and Financial Reconstruction.