Centre Nears FY27 Divestment and Asset Monetisation Target with ₹62,124 Crore Raised

The Centre has collected ₹62,124 crore from disinvestment and asset monetisation in FY27 so far, against the ₹80,000 crore it has budgeted to raise during the year. 

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Disinvestment accounts for the bulk of the money collected so far. It has brought in ₹55,757 crore, while asset monetisation has added another ₹6,367 crore, data from the Department of Investment and Public Asset Management (DIPAM) showed. 

The combined figure puts the government at about 78% of its full-year estimate. It has ₹17,876 crore left to raise to reach ₹80,000 crore. 

The ₹80,000 crore estimate is included under miscellaneous capital receipts in the Budget and covers money raised through both disinvestment and asset monetisation. 

Crossing that figure would be notable because the government has not exceeded its original annual target since FY19. In 2018-19, disinvestment receipts came to ₹84,972 crore, against a target of ₹80,000 crore. The government also went past its target in FY18. 

The pattern changed in the years that followed, with annual collections remaining below the initial targets. 

FY26 came closest in recent years. The Centre had initially set a combined target of ₹47,000 crore for disinvestment and asset monetisation. It ended the year with ₹45,306 crore, although that was well above the revised estimate of ₹33,837 crore. 

The composition of FY26 receipts was different from the current year. Asset monetisation accounted for ₹28,420 crore of the total, compared with ₹16,886 crore from disinvestment. 

LIC stake sale accounts for more than half of FY27 disinvestment 

A large part of this year's collections has come from stake sales in listed public sector companies. 

The government's 6.5% stake sale in Life Insurance Corporation of India brought in ₹31,515 crore. That alone accounts for more than half of the disinvestment proceeds collected in FY27 so far. 

The sale of a 2% stake in Coal India fetched ₹5,542 crore. Another ₹4,357 crore came from the sale of a 6.01% stake in NHPC. 

The government also raised ₹3,090 crore from General Insurance Corporation, ₹3,041 crore from Hindustan Copper and ₹2,266 crore from Central Bank of India. Stake sales in Indian Railway Finance Corporation, Cochin Shipyard and NLC India have also contributed to the overall receipts. 

The latest numbers are well above the disinvestment collections recorded in recent years. Receipts stood at ₹10,163 crore in FY25 and ₹16,507 crore in FY24, compared with ₹35,294 crore in FY23. 

The comparison needs some qualification because the Centre has changed the way these receipts are presented in recent Budgets. Public-sector stake sales and asset monetisation are now clubbed under miscellaneous capital receipts, whereas earlier targets were largely based on disinvestment. 

IDBI Bank sale remains pending 

The government no longer sets a separate target for funds expected from disinvestment or privatisation of state-run companies. 

The strategic sale of IDBI Bank is the next major transaction being awaited. The process is at an advanced stage and could add significantly to the government's receipts. 

A further ₹17,876 crore from stake sales and asset monetisation would be enough to meet the FY27 Budget estimate. 

Dividend receipts lower so far 

Disinvestment and asset monetisation have driven the increase in government receipts, while dividend collections from public sector enterprises have started the year at a slower pace. 

DIPAM data show dividend receipts of ₹ 7,133 crore so far in FY27. This compares with ₹78,438 crore collected through dividends in FY26. 

With the government already having raised close to four-fifths of its FY27 disinvestment and asset monetisation target, it is now within reach of its strongest performance against an original Budget estimate since FY19.