New Delhi, India — February 25, 2026
The Indian government aims to raise $20 billion (₹1.79 lakh crore) by 2029–30 through initial public offerings (IPOs) of state-owned enterprises, while shelving plans for full-scale privatization, according to a report released by NITI Aayog.
The proposed IPOs form part of a broader asset monetization strategy intended to generate $183.7 billion over the next four years.
📊 Second Phase of Asset Monetization
The IPO push is part of Prime Minister Narendra Modi’s second phase of asset monetization, which targets a total mobilization of ₹16.72 lakh crore by 2029–30.
Rather than pursuing outright privatization, the government plans to reduce stakes in selected public sector undertakings (PSUs) through stock market listings. The strategy aims to lower the fiscal deficit while retaining government control in key sectors.
Notably, after 2024, the government stopped setting specific annual disinvestment targets, signaling a shift toward selective monetization rather than aggressive privatization.
🚆 Railways IPOs to Lead the Drive
The government plans to sell stakes in seven railway companies, potentially raising ₹837 billion by 2030. While the companies were not named in the report, listings are expected to begin as early as FY 2026–27, with a projected ₹170 billion target for that fiscal year alone.
In FY 2027–28, the government is expected to list GAIL Gas, a subsidiary of GAIL (India) Limited, which could raise approximately ₹31 billion.
⚡ Power, Coal, and Aviation Also in Focus
The monetization roadmap includes:
Listing subsidiaries of state-run power companies, targeting ₹310 billion over four years.
IPOs of subsidiaries of Coal India Limited and renewable energy assets of NLC India Limited, aiming to raise ₹483 billion.
Stake sales in a subsidiary of the Airports Authority of India, along with divestment in four joint-venture airports owned with private partners.
These measures are designed to unlock value from underutilized assets without relinquishing strategic control.
📈 Why Privatization Is Being Deferred
Previously, the government faced challenges in raising funds through complete privatization of state-owned firms. Market conditions and investor appetite often limited deal execution.
As a result, policymakers have shifted focus toward monetizing assets and subsidiaries to generate capital for reinvestment.
Funds raised through asset monetization are typically reinjected into infrastructure expansion and modernization efforts. The approach is also expected to reduce the fiscal burden associated with recapitalizing public sector enterprises.
📌 Broader Fiscal Strategy
Stake dilution and partial listings remain central to India’s broader fiscal consolidation strategy. By monetizing government-owned assets while maintaining majority control, the government aims to balance revenue generation with strategic oversight in key industries.
The coming years are expected to see increased public market participation in sectors such as railways, power, coal, petroleum and natural gas, and aviation — marking one of India’s largest capital mobilization efforts through public listings.
