Centre targets ₹1.79 lakh crore in PSU IPOs by FY30; Railways to lead ₹83,700 crore stake sale drive

India plans to raise ₹1.79 lakh crore ($20 billion) by selling minority stakes in state-run enterprises through initial public offerings (IPOs) by FY30, pivoting further toward asset monetisation after shelving large-scale privatisation plans, Reuters reported, citing a policy blueprint released by NITI Aayog, cited by Reuters. The IPO pipeline forms part of a broader ₹15.2 lakh crore ($183.7 billion) asset monetisation programme slated over the next four years.

The divestment push spans railways, power, petroleum and natural gas, aviation and coal, and is embedded in Prime Minister Narendra Modi’s second four-year monetisation roadmap. The first phase raised ₹5.3 lakh crore by FY25 — about 90% of the ₹6 lakh crore target — underscoring the government’s shift from outright privatisation to structured stake dilution and subsidiary listings.

Railways anchor the IPO pipeline

Seven railway public sector enterprises are proposed to be listed, with potential proceeds estimated at ₹83,700 crore by FY30. Of this, around ₹17,000 crore is targeted through market listings in FY27, marking the first major tranche of the new cycle.

Power, coal and energy assets in focus

Subsidiaries of state-run power firms are expected to raise ₹31,000 crore over four years. Additionally, IPOs of arms of Coal India and renewable energy assets of NLC India Limited could garner nearly ₹48,300 crore.

In aviation, the Airports Authority of India plans to divest stakes in one subsidiary and four airports operated via joint ventures. Meanwhile, GAIL GAS, a subsidiary of GAIL (India), is slated for listing in FY28, with a potential ₹3,100 crore mobilisation.

Fiscal strategy behind the shift

Proceeds from asset monetisation are retained by the enterprises for reinvestment, limiting the fiscal burden of recapitalisation while preserving government ownership. Minority stake sales and calibrated divestment remain central to the Centre’s strategy to manage the budget deficit, even as it has stopped setting annual divestment targets after 2024.