Government of India Sets Ambitious ₹80,000 Crore Disinvestment Target for FY 2026‑27; IDBI Bank Privatization Enters Final Stage
New Delhi, Feb 23, 2026: The Government of India has announced an ambitious target of ₹80,000 crore for disinvestment and asset monetisation in the financial year 2026‑27, marking a significant increase over the revised estimate of approximately ₹34,000 crore in FY 2025‑26. The target includes proceeds from strategic privatizations of public sector undertakings (PSUs) as well as monetisation of government infrastructure and assets.
IDBI Bank Privatization Progresses
A key contributor to the FY 2026‑27 target is the strategic privatization of IDBI Bank. The Government of India and Life Insurance Corporation of India (LIC), which collectively hold around 60.72% of the bank’s shares, have invited and received financial bids from potential investors. The government holds 30.48% and LIC approximately 30.24%.
DIPAM (Department of Investment and Public Asset Management) officials confirmed that the bids are under review, with the evaluation process in an advanced stage. Market observers indicate that a winning bidder could be announced by March 2026, though final completion of the privatization will depend on regulatory approvals and formalities.
Other Disinvestment and Asset Monetisation Efforts
In addition to IDBI Bank, several other PSUs are part of the government’s broader divestment and asset monetisation plan. These include enterprises in shipping, steel, and infrastructure sectors. While the process for these entities is ongoing, the government continues to emphasise asset monetisation through infrastructure leasing, invITs, and land utilisation as a way to unlock long-term value.
Policy Outlook and Market Impact
The ambitious disinvestment target aims not only to boost government non-tax revenues but also to encourage operational efficiency and private investment in public enterprises. Financial markets have shown positive interest in PSU and infrastructure stocks, with investors closely monitoring the progress of IDBI Bank’s privatization.
Government officials note that strategic privatizations and monetisation initiatives are central to achieving the FY 2026‑27 target, while also contributing to sustainable value creation and fiscal stability.