The government has not lost its disinvestment mojo and remains on track, Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said, pushing back against concerns over the pace of asset sales.
“The government has not lost the disinvestment mojo, nor is it off the track,” Chawla told CNBC-TV18 on Monday, February 2, adding that disinvestment has been reinvented as a composite strategy, rather than a single-track process.
He said the government continues to pursue a multi-pronged and flexible approach, noting that the Economic Survey should be seen as an “ideation document” rather than a rigid roadmap.
₹80,000-crore divestment target ‘does not scare us’
Chawla said the government remains confident of achieving the ₹80,000-crore divestment target for FY27, stressing that the number itself is not a constraint.
“The ₹80,000 crore number does not scare us,” he said, adding that DIPAM has various disinvestment options at its disposal, depending on market conditions and feasibility.
He also highlighted that around 25 public sector enterprises have been strategically closed or disinvested over the last 10 years, underlining that progress has been steady.
More PSU OFSs and QIPs in FY26, many more in FY27
Outlining the government’s listing strategy, Chawla said DIPAM follows a waterfall mechanism for IPOs.
“We first do an IPO of around 10% and then bring the government stake down to 75%,” he said, adding that nearly 80% of CPSEs succeed in reaching this stage. Further stake reduction to 60–70% is pursued selectively, while the government remains cautious below the 60% level.
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He said DIPAM is picking a few more CPSEs to move from stage 1 to stage 2 and stage 3, and investors should expect more qualified institutional placements (QIPs) and offers for sale (OFSs) in the current financial year, with far more in FY27.
On Life Insurance Corporation of India (LIC), Chawla reiterated that a follow-on public offer will be undertaken when market conditions are appropriate.
“When the timing is right, we will do a follow-on offer for LIC,” he said, without committing to a specific timeline.
Private sector invited under PSE policy
The DIPAM secretary said the public sector enterprise policy explicitly invites private sector participation, describing it as part of the government’s evolving approach.
He added that central public sector enterprises (CPSEs) have dominated the Nifty 50, and currently account for around 25% of total dividend flows, underscoring their continued relevance in capital markets.
Land monetisation, InvITs and REITs
Chawla said land monetisation is a new experiment, and the government will identify specific assets for monetisation, rather than pursuing blanket asset sales.
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“We have invented and perfected the public InvIT,” he said, adding that the government will also launch REITs for CPSEs to monetise land assets in a structured manner.
