Government Plans to Unlock ₹80,000 Crore via Rail PSU Stake Sales by FY30
New Delhi, February 19, 2026 – The Indian government is preparing to raise approximately ₹80,000 crore over the next four years by gradually reducing its stakes in several railway public sector undertakings (PSUs). This move is part of the government’s broader strategy to monetise public assets and generate capital for infrastructure and development projects.
Scope of the Plan
The plan targets seven major rail PSUs where the government holds a majority stake. These include IRFC, IRCTC, RVNL, Ircon International, RailTel, RITES, and CONCOR. Officials indicate that stake dilution will be done in phases, allowing the government to maintain controlling interest while tapping market funds.
By executing multiple rounds of Offer for Sale (OFS) in the stock market, the government aims to attract domestic and institutional investors. The proceeds from these sales will contribute to government revenue without increasing taxes or borrowing.
Strategic and Fiscal Rationale
Rail PSUs have shown steady growth, supported by increasing freight and passenger services, as well as expansion in digital and logistics operations. The government sees these companies as having high market potential, making them ideal candidates for partial divestment.
Officials suggest that the ₹80,000 crore target is ambitious but achievable, given favorable market conditions and investor appetite for infrastructure-linked assets. The proceeds will be used for new development projects, debt reduction, and financing future infrastructure investments, aligning with India’s growth and fiscal consolidation goals.
Benefits for the Market and Stakeholders
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Investors: Opportunity to acquire shares in profitable and stable PSUs with strong growth potential.
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Government: Unlocks capital tied up in public enterprises without losing strategic control.
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Economy: Supports investment in rail infrastructure, technology, and modernisation, boosting long-term economic growth.
Implementation Timeline
The stake sales are expected to begin in FY27 and continue through FY30, with the government deciding on the exact sequence and size of each sale based on market conditions. By maintaining at least 51% ownership, the government ensures continued control while allowing the PSUs to access private capital.
Looking Ahead
Experts say that successful execution of these sales could pave the way for similar disinvestments in other sectors, such as energy and logistics, as part of the government’s asset monetisation and strategic divestment policy. For the rail PSUs, this move not only strengthens financial resources but also encourages efficiency and transparency in operations.
The plan represents a new chapter in India’s economic strategy, balancing fiscal prudence with market-driven growth, while providing investors an opportunity to participate in the expansion of the nation’s railway infrastructure.