CII Pitches For Faster Privatisation Of PSEs, Seeks Three-year Plan
In its proposals, the CII called upon the Centre to announce a rolling three-year privatisation pipeline, outlining which enterprises are likely to be taken up for privatisation during this period, recognising that full privatisation of all non-strategic PSEs is a complex and time-consuming process
New Delhi: In a move to sustain India's capital expenditure amid global economic uncertainties, leading industry chamber Confederation of Indian Industry (CII) on Sunday urged the government to mobilise resources through a calibrated approach to privatisation. Ahead of the Union Budget 2026-27, the industry body also called for focusing on sectors where private participation can enhance efficiency, technology infusion and global competitiveness.
In its proposals, the CII called upon the Centre to announce a rolling three-year privatisation pipeline, outlining which enterprises are likely to be taken up for privatisation during this period, recognising that full privatisation of all non-strategic PSEs is a complex and time-consuming process. The industry chamber also argued that this visibility would encourage deeper investor engagement and more realistic valuation and price discovery, which would contribute towards expediting the privatisation process.
“The government could reduce its stake in listed PSEs in a phased manner to 51 per cent initially, allowing it to remain the single largest shareholder while releasing significant value into the market. Over time, this stake could be brought down further to between 33 and 26 per cent,” CII stated in its analysis, adding that reducing the government's stake to 51 per cent in 78 listed PSEs could unlock close to Rs 10 lakh crore.
In the first two years of the roadmap, the CII said that the disinvestment strategy could target 55 PSEs where the government holds 75 per cent or less, mobilising around Rs 4.6 lakh crore. “In the subsequent stage, 23 PSEs with higher government stakes (over 75 per cent) could be disinvested, potentially bringing in Rs 5.4 lakh crore,” it said.
Commenting on the analysis, CII director general Chandrajit Banerjee said that a calibrated reduction of the government's stake in listed PSEs to 51 per cent and even lower is a pragmatic step that balances strategic control with value creation. “Unlocking nearly Rs 10 lakh crore of productive capital would provide vital resources to accelerate physical and social infrastructure development and support fiscal consolidation,” Banerjee said
The industry lobby believes that by focusing on governance, regulation, and enabling infrastructure while allowing competitive markets to drive efficiency, strategic privatisation can unlock public resources for high-impact areas such as health, education and green infrastructure.
“India’s growth story is increasingly being powered by private enterprise and innovation. A forward-looking privatisation policy, aligned with the vision of Viksit Bharat, will enable the government to focus on its core functions while empowering the private sector to accelerate industrial transformation and job creation,” it said.
