India plans to raise ₹1.79 lakh crore ($19.7 billion) by selling stakes in state-run companies through initial public offerings (IPOs) by the 2029/30 financial year. The move forms part of a wider government strategy to unlock value from public assets and boost revenue without increasing taxes.
The plan was outlined in a report released by government think tank NITI Aayog on Monday. It is part of Prime Minister Narendra Modi’s second four-year asset monetisation drive, which aims to raise $183.7 billion over the next four years.
A major portion of the targeted fundraising will come from the railway sector. The government plans to divest stakes in seven railway companies through IPOs, potentially raising ₹83,700 crore by 2030.
Of that amount, ₹17,000 crore is expected to be raised in the financial year beginning April 1, 2026. While the report did not name the companies, the listings are expected to draw strong investor interest given the sector’s strategic importance and growing infrastructure investments.
The government also plans to list subsidiaries of state-run power companies, aiming to raise about ₹31,000 crore over the next four years. In addition, IPOs of subsidiaries of Coal India and renewable energy assets of NLC India Limited are expected to generate ₹48,300 crore.
In the petroleum and natural gas space, GAIL GAS, a subsidiary of GAIL (India), is slated for listing in the 2027/28 financial year, with a potential fundraising target of ₹3,100 crore.
These moves reflect India’s effort to attract private capital into core energy sectors while maintaining strategic oversight.
The Airports Authority of India will also participate in the divestment programme. It plans to sell its stake in one subsidiary and monetise four airports operated through joint ventures with private partners.
The government’s first asset monetisation plan raised ₹5.3 lakh crore by 2024/25, falling short of its ₹6 lakh crore target. The new phase aims to build on that experience and improve execution.
India’s ambitious divestment roadmap signals a continued push toward fiscal discipline and market-driven reforms. If successfully executed, the planned IPOs could deepen capital markets, attract global investors, and provide significant funding for infrastructure and development over the coming years.
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.
Published on: Feb 24, 2026, 11:33 AM IST
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