Disinvestment and asset monetisation help mobilise government resources, improve PSE efficiency and encourage private investment, with India raising ₹62,124 crore in April–September 2026 against its ₹80,000 crore annual target.
NEWS: Government mobilised ₹62,124 crore through disinvestment + asset monetisation during April–September 2026; proposed IDBI Bank stake sale may boost receipts.
DISINVESTMENT
- Meaning: Sale of government equity in Public Sector Enterprises (PSEs).
- Strategic Disinvestment: Sale of stake along with transfer of management control.
- OFS: Government sells existing shares through the stock market; management control generally remains unchanged.
KEY DATA (2026–27)
- Total receipts: ₹62,124 crore.
- Disinvestment receipts: ₹55,757 crore.
- Annual target: ₹80,000 crore.
- Target achieved: 78%.
- IDBI Bank: Proposed strategic stake sale.
IMPORTANT INITIATIVES
- PSE Policy, 2021: Bare minimum public sector presence in strategic sectors.
- National Monetisation Pipeline (NMP): Unlocks value of existing public assets.
- NMP 2.0: Target of ₹16.72 lakh crore (FY 2025–30).
- LIC IPO (2022): Promoted wider public ownership.
WHY DISINVESTMENT?
- Mobilises government resources.
- Improves efficiency + corporate governance.
- Encourages private investment + competition.
- Reduces government's commercial burden.
REFORMS SUGGESTED
- Demand-based selection of PSEs for privatisation.
- Rolling three-year privatisation pipeline.
- Transparent bidding + fair valuation.
- Gradual reduction of government stakes while retaining control where required.