Budget 2026: CII Proposes 3-Year Privatisation Pipeline To Accelerate PSE Disinvestment

New Delhi, Jan 12 (KNN) The Confederation of Indian Industry (CII) has proposed the creation of a rolling three-year pipeline of public sector enterprises (PSEs) for stake sale to provide momentum to the government’s privatisation programme and improve investor participation.

Ahead of the Union Budget 2026–27, the industry body said greater predictability and a demand-driven approach could help unlock value from disinvestment and support public spending on development and infrastructure amid global economic uncertainty.

Rs 10 Lakh Crore Potential from Stake Reduction

According to CII’s estimates, a calibrated reduction of the government’s stake to 51 per cent in 78 listed PSEs could potentially unlock close to Rs 10 lakh crore. 

In the first phase, disinvestment in 55 PSEs where government holding is 75 per cent or lower could mobilise around Rs 4.6 lakh crore. A subsequent phase involving 23 PSEs with higher government ownership could raise an additional Rs 5.4 lakh crore.

CII said the proceeds could be deployed to support physical and social infrastructure development and contribute to fiscal consolidation.

Four-Pronged Privatisation Strategy

CII outlined a four-part strategy to accelerate privatisation. First, it recommended shifting from the current supply-led model—where the government identifies companies for sale before seeking bids—to a demand-driven approach by gauging investor interest across a wider set of PSEs and prioritising those with stronger valuation potential.

Second, it proposed announcing a rolling three-year privatisation roadmap, which it said would encourage deeper investor engagement and improve price discovery.

Third, the industry body called for the creation of a dedicated institutional framework to make the process more predictable and professionally managed. This could include a ministerial board for strategic oversight, an advisory body of industry and legal experts, and a professional execution team.

Fourth, CII suggested a phased reduction in government ownership—initially to 51 per cent to retain majority control, followed by a gradual dilution to between 33 per cent and 26 per cent.

Focus on Strategic Disinvestment

CII reiterated the need for faster implementation of the government’s strategic disinvestment policy, which envisages existing non-strategic sectors and maintaining a limited presence in strategic ones. It said structured investor feedback could also help address regulatory and procedural bottlenecks that often delay transactions.

(KNN Bureau)