India Govt Achieves 78% FY27 Divestment Target by August
By Business Desk
India’s government has successfully raised ₹62,124 crore, achieving 78% of its FY27 divestment and asset monetization target by August through PSU stake sales and InvITs.
India’s government has made substantial headway towards its fiscal year 2027 (FY27) financial goals, achieving approximately 78% of its budgeted disinvestment and asset monetisation target within the first five months. This strategic push to generate capital receipts resulted in a significant collection of ₹62,124 crore by the end of August.
These funds, crucial for the government’s financial health, were primarily generated through two distinct avenues. The majority came from divesting stakes in state-owned enterprises, while a smaller portion was raised through the monetisation of assets.
Key Financial Achievements
- Total amount raised: ₹62,124 crore
- From minority stake sales in nine Public Sector Undertakings (PSUs): ₹55,757 crore
- From asset monetisation via InvIT: ₹6,367 crore
The substantial sum from stake sales, totaling ₹55,757 crore, involved minority holdings in nine Public Sector Undertakings (PSUs). Key contributions to this effort came from the divestment of stakes in major entities like Life Insurance Corp (LIC), Coal India, and NHPC.
Beyond these completed sales, the government continues its strategic divestment agenda with IDBI Bank. The process for its strategic sale is actively underway, with revised bids already having been received from interested parties.
This intensified focus on capital receipts is a strategic response to prevailing macroeconomic conditions. Concerns have emerged that governmental expenditure may exceed initial budget estimates, largely driven by an increase in import bills during the period.