Archive · 12 Jan 2026
CII Proposes CPSE Privatisation Blueprint for Budget 2026-27
The Confederation of Indian Industries (CII) has suggested a plan to the government for speeding up the privatisation of public sector companies (CPSEs) that are not in strategic sectors.
They think this can help the government get a lot of money, almost ₹10 lakh crore, by selling parts of these companies.
The CII wants the government to first see which companies investors are interested in, then announce a three-year plan for selling stakes, and set up a special team to manage this process.
They also suggest that the government should first reduce its stake in these companies to 51%, and then maybe even lower.
This way, the government can still be the biggest shareholder but also get a lot of money to spend on important things like infrastructure and education.
The government is currently raising less money than expected from selling shares, so this plan could help them meet their financial goals.
CII proposes a calibrated approach to privatise non-strategic CPSEs and disinvest as an interim measure.
Reducing government stake to 51% in 78 listed PSEs could unlock nearly ₹10 lakh crore.
CII recommends a demand-based approach, a rolling three-year privatisation pipeline, and an institutional framework for privatisation.
Initial phase targets 55 PSEs with government holding 75% or less, mobilising around ₹4.6 lakh crore.
Subsequent phase targets 23 PSEs with higher government stakes, potentially bringing in ₹5.4 lakh crore.
- Who
- Confederation of Indian Industries (CII)
- What
- Proposed a blueprint for privatisation of Central Public Sector Enterprises (CPSEs)
- When
- Proposed for Union Budget 2026-27
- Where
- India
- Why
- To unlock value of public sector enterprises and accelerate industrial transformation and job creation
Pro-Privatisation
Cautious Approach
Privatisation Strategy
Pro-Privatisation
CII advocates for a calibrated approach to privatise non-strategic CPSEs to unlock significant funds for development and capital investments.
Cautious Approach
Government should test market demand and investor interest before proceeding with privatisation to ensure realistic valuations and smoother execution.
- Organization
- Confederation of Indian Industries (CII)
- Proposed Measure
- Calibrated approach to privatisation in non-strategic CPSEs
- Potential Unlocking of Funds
- ₹10 lakh crore
- Initial Target PSEs
- 55 PSEs with government holding 75% or less
- Subsequent Target PSEs
- 23 PSEs with government holding over 75%
- Estimated Funds from Initial Phase
- ₹4.6 lakh crore
- Estimated Funds from Subsequent Phase
- ₹5.4 lakh crore
- Proposed Stake Reduction
- Government stake reduced to 51% initially, then 33-26%
- Budget Unveiling Date
- 1 February 2026
- Current Fiscal Year Disinvestment Target
- ₹47,000 crore
- Current Fiscal Year Disinvestment Achieved
- ₹8,768 crore
Sources
CII proposes blueprint for CPSE privatisation
CII urges Centre to fast-track privatisation of PSUs
Budget 2026 Expectations: CII Suggests Phased Privatisation Roadmap For Public Sector Enterprises
Rapid PSE privatisation may unlock Rs 10 lakh crore: CII
Test investor demand before stake sale in state-owned firms, CII tells govt
CII Pitches For Faster Privatisation Of PSEs, Seeks Three-year Plan
CII Proposes 3-Year Rolling Privatisation Pipeline To Unlock ₹10 Lakh Crore From PSEs For Budget 2026-27
