The government has mobilised Rs 20,274 crore via PSU divestment in FY27, the highest so far since FY23 when it raised Rs 35,294 crore. In FY24, the divestment receipts were Rs 16,507 crore, in FY25 at Rs 10,163 crore and in FY26 at Rs 16,886 crore.

The government has launched offer for sale (OFS) for seven PSU companies so far this year, including Central Bank of India, Coal India, NHPC, NLC India, General Insurance Corporation, IRFC and Cochin Shipyard. It has raised about 31 per cent of its full-year budgeted target of Rs 80,000 crore in the first quarter itself.

Possibility of lower tax collections, stress of increased expenditure on subsidy due to a higher energy import bill and impact of El Niño on the monsoon, is making the government pursue avenues to garner revenues, especially from the non-tax side.

The government has a strong pipeline of PSU companies it is looking to divest. The strategic sale in IDBI Bank is also on the table, despite repeated failed attempts. Another big ticket disinvestment in the current fiscal could be of Life Insurance Corporation (LIC). The government currently holds 96.5 per cent in the insurance behemoth and has to lower it to 90 per cent by May next year.