Asset Monetisation Pipeline 2.0: Government Unveils ₹16.72 Lakh Crore Plan with PSU Stake Sales

The government has announced a major push for disinvestment and equity sales by public sector undertakings (PSUs) under its new ₹16.72 lakh crore Asset Monetisation Pipeline 2.0, targeting stake sales in subsidiaries between FY27 and FY30.

Under the framework, central public sector enterprises (CPSEs) will primarily monetise assets by diluting equity in their subsidiaries and joint ventures. The proceeds from these transactions are expected to remain with the respective PSUs, bolstering their financial position.

Key Sectoral Proposals

• GAIL India: The plan envisions equity stake sales in its city gas distribution (CGD) companies, followed by the listing of GAIL Gas. An initial public offering (IPO) is projected in FY28, with anticipated fund-raising of approximately ₹3,100 crore.
• Coal India: The company is expected to partially dilute its holdings in subsidiaries, aiming to generate around ₹48,350 crore through equity sales between FY27 and FY30.
• Power Sector: Step-down subsidiaries of CPSEs are also slated for equity dilution, with a cumulative target of ₹31,000 crore via IPOs and follow-on public offerings (FPOs) by 2030.
• Airports Authority of India: The authority plans to divest stakes in one subsidiary and four joint ventures, targeting ₹12,550 crore through a mix of IPOs, FPOs, and private placements.

Redevelopment Initiatives

The government has also outlined redevelopment plans for two iconic properties: Hotel Ashok and Hotel Samrat. Redevelopment of Hotel Ashok is expected to commence in FY27, while work on Hotel Samrat is scheduled for FY30. Together, the two projects are projected to generate ₹1,200 crore in monetisation value.

Also Read: RBI Releases Premature Redemption Calendar for 33 SGB Tranches

This ambitious asset monetisation roadmap underscores the government’s strategy to unlock value from PSUs while retaining ownership and leveraging proceeds for further development.

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.