New Delhi (03.06.2026): The Government of India is mooting to sell stakes in some of the public sector companies, including Life Insurance Corporation of India (LIC), Hindustan Zinc and several Public Sector Banks. It looks to cushion the impact of higher oil prices on government finances.
Reportedly the government has identified eight companies for stake sales over the coming months as it seeks to raise additional resources while keeping its fiscal deficit under control. The move comes after the recent surge in global crude oil prices during the Iran-West Asia conflict put pressure on government finances.
Although oil prices have cooled in recent weeks as tensions eased and shipping through the Strait of Hormuz resumed, the government is looking to create additional fiscal room in case energy prices remain volatile.
Officials overseeing the disinvestment programme have reportedly been holding weekly meetings with investment bankers to assess investor demand, work on pricing and finalise timelines for the planned share sales. More bankers are also being appointed to prepare additional state-run companies for future offerings.
The government is also considering inviting fresh bids for the sale of a majority stake in IDBI Bank after an earlier attempt failed to attract sufficient buyer interest. The Centre may lower the reserve price for the transaction, with fresh bids expected to be restricted to those who participated in the previous round.
Govt Plans Stake Sales In PSUs To Cushion Strain From Oil Crisis
By IndianMandarins - 2026-07-03 20:01:00
New Delhi (03.06.2026): The Government of India is mooting to sell stakes in some of the public sector companies, including Life Insurance Corporation of India (LIC), Hindustan Zinc and several Public Sector Banks. It looks to cushion the impact of higher oil prices on government finances.
Reportedly the government has identified eight companies for stake sales over the coming months as it seeks to raise additional resources while keeping its fiscal deficit under control. The move comes after the recent surge in global crude oil prices during the Iran-West Asia conflict put pressure on government finances.
Although oil prices have cooled in recent weeks as tensions eased and shipping through the Strait of Hormuz resumed, the government is looking to create additional fiscal room in case energy prices remain volatile.
Officials overseeing the disinvestment programme have reportedly been holding weekly meetings with investment bankers to assess investor demand, work on pricing and finalise timelines for the planned share sales. More bankers are also being appointed to prepare additional state-run companies for future offerings.
The government is also considering inviting fresh bids for the sale of a majority stake in IDBI Bank after an earlier attempt failed to attract sufficient buyer interest. The Centre may lower the reserve price for the transaction, with fresh bids expected to be restricted to those who participated in the previous round.
