CII suggests expedited, demand-led approach for privatisation of public sector enterprises
NEW DELHI: Industry lobby CII has suggested an accelerated four-pronged strategy to unlock value from the disinvestment of public sector enterprises, calling for a demand-driven approach in selecting units for privatisation and following a predictable roadmap.
In its proposals for the Union Budget 2026-27, CII urged the government to mobilise resources through a calibrated approach to privatisation, focusing on sectors where private participation can enhance efficiency,
technology infusion, and global competitiveness, to sustain capital expenditure and address developmental priorities amid global economic uncertainties.
The Confederation of Indian Industry (CII) called upon the Centre to announce a rolling three-year privatisation pipeline, outlining which enterprises are likely to be taken up for privatisation during this period, recognising that full privatisation of all non-strategic PSEs is a complex and time-consuming process.
It argued that this visibility would encourage deeper investor engagement and more realistic valuation and price discovery, which would contribute towards expediting the privatisation process.
CII has proposed a phased reduction of the government’s stake in listed PSEs to 51 per cent and eventually 33–26 per cent, estimating this could unlock nearly Rs 10 lakh crore.
It urged faster strategic disinvestment, a demand-driven privatisation approach, and a dedicated institutional framework to improve execution, valuation, and investor confidence.
