Govt’s Bold PSU IPO Plan: ₹1.79 Lakh Crore Target with Railways & Green Energy Leading

New Delhi, February 25, 2026: The Indian government has rolled out a bold roadmap to unlock significant capital from public sector undertakings (PSUs) through initial public offerings (IPOs) and stake sales. According to the National Monetisation Pipeline 2.0 (NMP 2.0) released by NITI Aayog on February 23, 2026, the plan aims to raise approximately ₹1.79 lakh crore (around $20 billion) from state-run IPOs by the financial year 2029-30.

This forms part of the larger NMP 2.0 initiative, targeting a total asset monetisation potential of ₹16.72 lakh crore over FY26 to FY30 across 12 key sectors. The pipeline includes private sector investments worth about ₹5.8 lakh crore and focuses on infrastructure-heavy areas like railways, power, coal, petroleum & natural gas, aviation, and more. Finance Minister Nirmala Sitharaman launched the report, highlighting its alignment with the "Viksit Bharat" vision for accelerated infrastructure growth and sustainable financing.

Unlike full privatisation, the strategy emphasises calibrated minority stake sales and listings of high-potential subsidiaries to ease fiscal pressures while attracting private capital.

Railways to Lead the IPO Wave Railways emerge as the biggest contributor in the PSU IPO pipeline. NITI Aayog outlines plans for seven railway-related companies to list via IPOs, potentially mobilising ₹837 billion (₹83,700 crore) by FY30. Of this, around ₹170 billion (₹17,000 crore) is targeted in FY27 alone, starting from April 1, 2026. These entities focus on rail infrastructure and are expected to draw strong market interest.

Green Energy Subsidiaries in the Spotlight To support India's renewable energy goals, the government is fast-tracking listings of green energy arms from major PSUs:

NLC India Green Energy (subsidiary of NLC India): Slated for the first half of 2026, focusing on renewable generation and part of a broader power sector pool.
SJVN Green Energy (subsidiary of SJVN): Targeted for the second half of 2026, with an estimated raise of around ₹5,100 crore.

Power sector subsidiaries overall are projected to raise ₹310 billion over the next four years through IPOs and follow-on offers.

Coal and Other Key Listings

CMPDI (Central Mine Planning & Design Institute, a Coal India subsidiary): Expected around March 2026 or soon after, contributing to the coal sector's ₹483 billion pool (including other Coal India arms).
GAIL Gas: Planned for FY27-28, targeting approximately ₹3,100 crore (₹31 billion).

Coal India subsidiaries and related assets are eyed to generate substantial funds in the coming years.

Current Market Action The disinvestment momentum is already visible. The government is currently executing an Offer for Sale (OFS) in Indian Railway Finance Corporation (IRFC), divesting up to 4% stake (2% base + 2% oversubscription/green shoe option).

Timeline: Non-retail investors on February 25, 2026; retail and employees on February 26, 2026.
Floor Price: ₹104 per share (a discount to recent trading levels around ₹109-111).

This OFS aims to meet minimum public shareholding norms and is being handled via stock exchanges with Goldman Sachs as the broker.

Budget Backing and Broader Targets The Union Budget 2026-27 has set a disinvestment and asset monetisation target of ₹80,000 crore—a sharp increase from the previous year's revised estimate of around ₹33,837 crore. This supports ongoing processes like the strategic sale of IDBI Bank (in final stages) and stake divestments in Airports Authority of India (AAI) subsidiaries and joint ventures.

Experts view this PSU IPO wave as a positive catalyst for the market, especially in infrastructure and green sectors. Investors should track official prospectuses on NSE/BSE, DIPAM updates, and platforms like Chittorgarh for real-time details, as timelines can shift based on market conditions and regulatory approvals.