Government Targets ₹80,000 Crore from Rail PSU Stake Sale by FY30

The government is preparing a phased disinvestment plan to mobilise around ₹80,000 crore by reducing its holdings in select railway public sector undertakings over a 4-year period ending FY30, as per The Business Standard report. 

Phased Stake Dilution Across 7 Rail PSUs 

The proposal covers 7 railway-linked PSUs where the government currently holds majority ownership: Indian Railway Finance Corporation, Indian Railway Catering and Tourism Corporation, Rail Vikas Nigam Limited, Ircon International, RailTel Corporation of India, RITES Limited and Container Corporation of India. 

Stake sales are expected to be executed in multiple tranches through Offer for Sale transactions in the stock market. While shares will be divested in phases, the government plans to retain at least 51% ownership in each entity to maintain control. 

The disinvestment exercise is scheduled to begin in FY27 and continue through FY30, with the size and sequencing of each tranche dependent on prevailing market conditions. 

Fiscal Strategy and Capital Deployment 

The ₹80,000 crore mobilisation target forms part of the broader asset monetisation strategy aimed at generating capital without raising taxes or increasing borrowing. Proceeds from the stake sales are expected to support infrastructure expansion, fund development projects and contribute to fiscal consolidation efforts. 

Rail PSUs have recorded steady operational growth, supported by rising freight movement, passenger services expansion and digital and logistics initiatives. Officials view these companies as suitable candidates for partial dilution given investor appetite for infrastructure-linked assets. 

Market and Sector Implications 

The proposed divestment offers institutional and domestic investors an opportunity to participate in established and profitable railway enterprises. At the same time, it allows the government to unlock capital while preserving strategic control. 

Successful execution could create a template for similar stake reductions in sectors such as energy and logistics, reinforcing the government’s long-term strategy of balancing fiscal prudence with market participation. 

Read More: IRCTC Dividend Record Date Tomorrow (Feb 20, 2026) – ₹3.50 Interim Payout Announced! 

Conclusion 

With a target of ₹80,000 crore over 4 years, phased stake sales in 7 railway PSUs between FY27 and FY30 mark a structured step in the government’s asset monetisation roadmap while maintaining majority ownership in key transport enterprises. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.