New Delhi: The Central Government has significantly accelerated its public sector disinvestment programme in the current financial year, mobilising ₹20,274 crore through PSU stake sales in FY27, marking the highest divestment receipts in the last four years. The move comes amid growing fiscal challenges arising from the ongoing Middle East crisis, rising energy import costs and concerns over domestic revenue generation.
The government has already achieved nearly 31 per cent of its annual divestment target of ₹80,000 crore within the first quarter of FY27, indicating an aggressive push to monetise public assets.
Highest Divestment Since FY23
According to government data, FY27 has witnessed the strongest start to the disinvestment programme since FY23.
The divestment receipts over the last few financial years are:
- FY23: ₹35,294 crore
- FY24: ₹16,507 crore
- FY25: ₹10,163 crore
- FY26: ₹16,886 crore
- FY27 (so far): ₹20,274 crore
The current year’s collections have already surpassed the full-year figures of both FY24 and FY26, highlighting the Centre’s renewed focus on non-tax revenue mobilisation.
Seven PSU Stake Sales Completed
So far this financial year, the government has launched Offer for Sale (OFS) in seven public sector enterprises. These include:
- Central Bank of India
- Coal India
- NHPC
- NLC India
- General Insurance Corporation (GIC)
- Indian Railway Finance Corporation (IRFC)
- Cochin Shipyard
The proceeds from these stake sales have substantially contributed to the government’s revenue collections during the first quarter.
Fiscal Pressures Driving Faster Divestment
The accelerated disinvestment programme comes at a time when the government is facing multiple fiscal pressures.
The ongoing Middle East conflict has increased concerns over higher crude oil and energy import bills, potentially leading to increased subsidy expenditure. At the same time, the possibility of lower tax collections and uncertainties surrounding the impact of El Niño on the monsoon have prompted the government to strengthen non-tax revenue sources.
Officials believe faster monetisation of public assets will help maintain fiscal discipline while supporting expenditure commitments.
LIC and IDBI Bank Among Next Big Divestment Candidates
The Centre continues to maintain a strong pipeline of strategic disinvestment proposals for the remainder of FY27.
Among the most significant transactions under consideration is the long-pending strategic sale of IDBI Bank, despite previous attempts not reaching completion.
Another major divestment expected during the current fiscal is a further stake sale in Life Insurance Corporation (LIC). The government currently owns around 96.5 per cent of the insurance giant and is required to reduce its holding to 90 per cent by May next year in line with public shareholding norms.
The proposed LIC stake sale is expected to be one of the largest disinvestment exercises undertaken during FY27.
Government Eyes ₹80,000 Crore Target
With ₹20,274 crore already mobilised, the Centre has covered nearly one-third of its ambitious ₹80,000 crore divestment target for FY27.
Market participants expect the pace of stake sales to remain strong in the coming months as the government balances fiscal requirements with market conditions and strategic disinvestment objectives.
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