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CII Urges Demand-Led Privatisation Push With Three-Year Pipeline Ahead of Budget 2026

CII projects value mobilisation of about Rs 10 lakh crore via phased stake cuts with a new oversight mechanism.

Overview

  • The industry body recommends shifting to a demand-based selection model that gauges investor interest first to improve execution and price discovery.
  • It proposes a rolling three-year privatisation pipeline to give investors visibility and reduce stalled transactions.
  • CII calls for a dedicated institutional framework comprising a ministerial board, an expert advisory board, and a professional execution team for due diligence and coordination.
  • The roadmap suggests reducing government holdings in listed PSEs to 51% initially, then to 33–26% over time, estimating nearly Rs 10 lakh crore unlocked from 78 PSEs.
  • CII estimates about Rs 4.6 lakh crore from 55 PSEs in the first two years and Rs 5.4 lakh crore from 23 PSEs thereafter, with proposals submitted ahead of the Feb. 1 Union Budget and not yet adopted as policy.