India on track with 78% of FY27 divestment target in first five months

New Delhi — India's disinvestment programme is gathering momentum, with the government raising nearly three-quarters of its budgeted proceeds through sales of minority and strategic stakes in state-owned enterprises. The Rs 55,757 crore mobilized between April and August represents 78 per cent of the full-year target, suggesting steady progress toward the Rs 80,000 crore goal.

The life insurance sector led the charge, with a 6.5 per cent stake sale in Life Insurance Corporation fetching Rs 31,515 crore — more than half of total divestment proceeds to date. Coal India contributed Rs 5,542 crore through a 2 per cent share sale, while NHPC raised Rs 4,357 crore following a 6.01 per cent stake dilution. A more recent divestment of 6 per cent stake in Hindustan Copper garnered Rs 3,041 crore.

The government has executed stakes sales across nine public sector undertakings during the period, including strategic divestments of Indian Medicines Pharmaceuticals Corporation Limited. Additional revenues came from remittances by the State-owned Undertakings Treasury Interface, or SUUTI, a mechanism for monetising government shareholdings. Other entities in which the government reduced its stake include Central Bank of India, NLC India, General Insurance Corporation, IRFC, and Cochin Shipyard.

The robust performance in the first half of the fiscal year suggests the government remains well-positioned to achieve its full divestment and asset monetisation objectives for 2026-27, underpinned by continued appetite for public sector share offerings.