New Delhi: The Indian government is preparing to sell minority stakes in several state-owned enterprises, Department of Disinvestment and Public Asset Management (DIPAM) Arunish Chawla told CNBC-TV18 on Monday. He did not specify which companies are being considered, but Reuters has previously reported that the plan could include five public sector banks, among them UCO Bank and Bank of Maharashtra.
The government is also required to reduce its shareholding in Life Insurance Corporation of India (LIC) to comply with the Securities and Exchange Board of India’s minimum public shareholding rules.
Chawla said an initial public offering (IPO) of a government-run firm in the natural resources sector will be launched during the current financial year. The IPO could involve the parent company or a subsidiary. While no names were disclosed, ONGC and NHPC have been exploring listings of their green subsidiaries, ONGC Green Energy and NHPC Renewable Energy, Reuters reported.
These planned stake sales and IPOs are expected to contribute to the government’s divestment targets. India aims to raise Rs 47,000 crore through stake sales and asset monetisation in the financial year ending March 31, 2026.
Chawla also noted that dividend income from state-run firms is set to exceed the projected Rs 69,000 crore (US$7.83 billion).