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CII Seeks Demand-Led PSE Privatisation With Three-Year Pipeline, Estimates ₹10 Lakh Crore Unlock

The industry body has submitted pre-Budget proposals that await a government response in the February 1 Union Budget.

Overview

  • CII proposes reversing the current supply-driven model by first gauging investor interest to prioritise assets with adequate demand and valuations.
  • It calls for a rolling three-year list of privatisation candidates to give investors visibility, deepen engagement, and improve price discovery.
  • The plan includes a dedicated execution framework featuring a ministerial board, an expert advisory panel, and a professional management team.
  • A phased roadmap would cut government stakes in listed PSEs to 51 percent initially and later to 33–26 percent, consistent with the Strategic Disinvestment Policy.
  • CII estimates that taking stakes to 51 percent in 78 listed PSEs could raise nearly ₹10 lakh crore, including about ₹4.6 lakh crore from 55 firms in the first two years and ₹5.4 lakh crore from 23 in a subsequent phase.