India has achieved about 78% of the budgeted FY27 disinvestment target and asset monetisation target of Rs 80,000 crore within just five months of the financial year.

Key Highlights

• India achieved 78% of its FY27 disinvestment target within five months, strengthening prospects for meeting the annual goal.
• Strong disinvestment proceeds highlight the government's continued focus on asset monetisation and strategic stake sales during FY27. 

The government has raised Rs 55,757 crore so far this fiscal through minority stake sales in nine public sector undertakings (PSUs), including big-ticket ones like LIC and Coal India, as well as the strategic sale of Indian Medicines Pharmaceuticals Corporation Ltd and remittances from SUUTI.

LIC Stake Sale Contributes More Than Half of Total Proceeds

More than half of the disinvestment proceeds came from the 6.5% LIC stake sale, which garnered Rs 31,515 crore. Further, a 2% share sale in Coal India fetched about Rs 5,542 crore, while a 6.01% stake dilution in NHPC brought Rs 4,357 crore to the exchequer.

Earlier this week, the government also sold a 6% stake in Hindustan Copper to raise Rs 3,041 crore.

Other PSUs Where the Government Diluted Its Stake

The other entities in which the government disinvested its stake include Central Bank of India, NLC India, GIC, IRFC, Cochin Shipyard and Hindustan Copper.

Besides equity stake sales, Rs 6,367 crore was raised through asset monetisation via InvIT.

Total Receipts Reach Rs 62,124 Crore, 78% of Full-Year Target

Taken together, capital receipts from disinvestment and asset monetisation so far this fiscal stand at Rs 62,124 crore, representing about 78% of the full-year budget target of Rs 80,000 crore.

IDBI Bank Strategic Sale Remains in the Pipeline

A strategic sale in IDBI Bank is also on the table. Following a failed attempt earlier this year to sell the bank, the government has now received revised bids from Dubai-based Emirates NBD and Prem Watsa-led Fairfax Financial Holdings.

Government's Push Comes Amid Fiscal Pressure

The government's push on miscellaneous capital receipts through disinvestment and asset monetisation this fiscal comes amid concerns over expenditure exceeding budget estimates, driven by higher energy and fertiliser import bills. The government has set a fiscal deficit target of 4.3% for FY27.

Disinvestment Target: A Historical Look

Fixing separate disinvestment targets has been discontinued since the Revised Estimate (RE) of FY2023-24. However, Rs 30,000 crore, Rs 33,000 crore, Rs 33,837 crore and Rs 80,000 crore were budgeted under Miscellaneous Capital Receipts for RE 2023-24, RE 2024-25, RE 2025-26 and BE 2026-27, respectively.

Also Read: What Industry Leaders Opine on Union Budget 2026-27

In 2021-22 and 2022-23, against Revised Estimates of Rs 78,000 crore and Rs 50,000 crore set in the Budget, the government had actually raised Rs 13,534 crore and Rs 35,294 crore, respectively.

In 2019-20 and 2020-21, against Revised Estimates of Rs 65,000 crore and Rs 32,000 crore, actual realisation stood at Rs 50,300 crore and Rs 32,886 crore, respectively.