The Confederation of Indian Industry (CII) has suggested an accelerated four-pronged strategy to unlock value from the disinvestment of public sector enterprises (PSEs), calling for a demand-driven approach in selecting units for privatisation, and following a predictable road map.
- In its proposals for the Union Budget 2026-27, the industry lobby urged the Union government to mobilise resources through a calibrated approach to privatisation focusing on sectors where private participation can enhance efficiency, technology infusion, and global competitiveness, to sustain capital expenditure and address developmental priorities amid global economic uncertainties.
- The CII called upon the Centre to announce a rolling three-year privatisation pipeline, outlining which enterprises are likely to be taken up for privatisation during this period while recognising that full privatisation of all non-strategic PSEs is a complex and time-consuming process. It argued that this visibility would encourage deeper investor engagement and more realistic valuation and price discovery, which would contribute towards expediting the privatisation process.
Releasing value
- “Government could reduce its stake in listed PSEs in a phased manner to 51% initially, allowing it to remain the single largest shareholder while releasing significant value into the market. Over time, this stake could be brought down further to between 33% and 26%,” the CII stated in its proposal.
- Reducing the government’s stake to 51% in 78 listed PSEs could unlock close to ₹10 lakh crore, according to its analysis.
- “A calibrated reduction of the government’s stake in listed PSEs to 51% and even lower is a pragmatic step that balances strategic control with value creation. Unlocking nearly ₹10 lakh crore of productive capital would provide vital resources to accelerate physical and social infrastructure development and support fiscal consolidation,” CII Director-General Chandrajit Banerjee said.