PSU Budget 2026: Record ₹12.2 Lakh Crore Capex & New Investment Roadmap

NEW DELHI, March 16, 2026 – India’s Public Sector Undertakings (PSUs) are set for a major operational scale-up following the Union Budget 2026-27. The latest allocations confirm a sharp increase in Capital Expenditure (Capex) aimed at strengthening industrial infrastructure and energy security.

1. Capex Allocation: ₹12.2 Trillion

The Finance Ministry has officially earmarked ₹12.2 Lakh Crore for public capital expenditure for FY 2026-27. This represents a 10% increase from the previous fiscal’s ₹11.2 Lakh Crore.

• Core Objective: Expansion of high-speed rail, green energy transitions, and scaling domestic manufacturing.

• Economic Impact: This outlay is designed to boost order books for major engineering and construction firms in the PSU space.

2. Sector-Specific Outlay (FY27)

3. Disinvestment & Policy Roadmap

The government has set a disinvestment target of ₹80,000 Crore for the upcoming fiscal year.

• Strategic Moves: Priorities include the stake sale in IDBI Bank and dilution in specific shipping and rail entities.

• Structural Shift: A new framework is under review to allow government equity in listed PSUs to potentially adjust while retaining strategic oversight.

4. Industrial Growth Schemes

• Biopharma SHAKTI: ₹10,000 Crore for a domestic production ecosystem.

• SME Growth Fund: ₹10,000 Crore dedicated to PSU vendors and MSMEs.

• Logistics: ₹10,000 Crore scheme for indigenous container manufacturing.

Disclaimer: This article is based on publicly available information.