Business physique Confederation of Indian Business (CII) has proposed an accelerated four-pronged technique to extract worth from disinvestment of public sector enterprises, calling for a demand-driven strategy in choosing items for privatization and a predictable roadmap to be adopted.
Within the Union Finances for 2026-27, the CII known as on the federal government to mobilize sources by means of a coordinated strategy to privatization, specializing in areas the place non-public participation can improve effectivity, know-how adoption and international competitiveness, to maintain capital expenditure and tackle growth priorities amid international financial uncertainty.
Recognizing that full privatization of all non-strategic PSEs is a fancy and time-consuming course of, CII known as on the Middle to announce a three-year rolling privatization pipeline outlining which firms are prone to be eligible for privatization throughout this era.
It argued that this visibility would deepen investor engagement, facilitate extra reasonable valuations and value discovery, and assist pace up the privatization course of.
“The federal government can regularly cut back its stake in listed PSEs (public sector enterprises) to 51% initially, permitting it to stay the only largest shareholder whereas releasing vital worth to the market. Over time, this stake may very well be additional lowered to 33% to 26%,” CII stated.
In keeping with the evaluation, decreasing the federal government’s stake within the 78 listed PSEs to 51% might release practically Rs 100,000 crore.
Within the first two years of the roadmap, the disinvestment technique will goal 55 PSEs through which the federal government holds lower than 75% and is prone to mobilize round Rs 4,600 crore.
Within the subsequent section, 23 PSEs with excessive authorities stake (greater than 75%) might be disinvested, probably bringing in Rs 5,400 crore, the report stated.
“A coordinated discount within the authorities’s stake in listed PSEs to 51 per cent and even much less is a practical step that balances strategic administration and worth creation. Liberating up practically Rs 10 billion in productive capital might be a essential useful resource to speed up bodily and social infrastructure growth and assist fiscal consolidation,” stated Chandrajit Banerjee, Director Basic, CII.
CII stated strategic privatization can release public sources for high-impact areas equivalent to well being, training and inexperienced infrastructure by specializing in governance, regulation and infrastructure, and enabling aggressive markets to enhance effectivity.
“India’s progress story is more and more pushed by non-public enterprise and innovation. Proactive privatization insurance policies in keeping with the imaginative and prescient of Vikshit Bharat will enable the federal government to give attention to core features whereas empowering the non-public sector to speed up industrial transformation and job creation,” the report stated.
The CII proposed accelerating the implementation of the federal government’s strategic disinvestment coverage, which envisages withdrawal from all PSEs in non-strategic sectors and minimal presence in strategic sectors.
The trade foyer advisable a shift to a demand-based strategy in choosing PSEs for privatization, saying the federal government is now figuring out particular firms to promote after which attracting investor curiosity. Nonetheless, if ample demand or recognition will not be achieved, the method usually stalls.
CII proposed reversing this order, first gauging investor curiosity throughout a broader group of firms after which prioritizing firms that generate stronger curiosity and meet valuation expectations. Such an strategy would guarantee smoother execution and higher value discovery, the corporate stated. Structured suggestions from potential buyers may assist tackle procedural and regulatory bottlenecks.
CII additionally advisable an institutional framework to strengthen oversight, accountability, and investor confidence, and to make sure that privatizations are managed predictably and professionally.
It known as for the institution of a specialised physique with a ministerial committee answerable for strategic steerage, an advisory board of trade and authorized consultants to offer impartial benchmarking, and an expert administration crew answerable for implementation, due diligence, market engagement, and regulatory coordination.
This construction additionally screens market developments, stakeholder suggestions, and post-privatization efficiency to allow steady enchancment.
issued – January 11, 2026 10:16pm IST
