Privatisation

Government Plans to Sell Stake in 6 Public Sector Companies


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The central government may soon sell its shares in several Public Sector Undertakings (PSUs). According to sources, the government is considering selling a small portion of its stake in around six PSUs. This sale is expected to take place in the next financial year (FY 2026). The government plans to sell these shares through the Offer for Sale (OFS) method. However, before announcing the sale, officials will carefully analyze the market conditions.

The main aim of these sales is to ensure that the government gets a fair price based on the market situation. Also, there will be a proper gap between two consecutive share sales to avoid any negative impact on the stock market. The stake sale will likely include PSUs from sectors such as infrastructure, power, oil and gas, and defense.

Strategic Disinvestment Approach for FY 2026

For strategic disinvestment in FY 2026, the government will follow a calibrated (well-planned) approach. The focus will be on:
✅ Generating maximum value from the sales
✅ Creating new assets
✅ Listing non-core assets of PSUs

Disinvestment of IDBI Bank

One of the key priorities will be the sale of IDBI Bank. The government currently owns 45.48% of the bank, while Life Insurance Corporation of India (LIC) holds 49.24%. Together, the government and LIC plan to sell 60.7% of their total stake in the bank. The disinvestment process for IDBI Bank was first announced in 2022, and the government aims to complete it in FY 2026.

Disinvestment and Asset Monetization Targets

In FY 2025, the government aimed to collect ₹50,000 crore through disinvestment and asset monetization.

As part of the Union Budget 2025, the government launched the second asset monetization plan (2025-30). Under this plan, the goal is to raise ₹10 lakh crore by selling government-owned assets and reinvesting the money into new infrastructure projects.

This initiative will help in improving the country’s infrastructure while also reducing the government’s financial burden.