Govt pegs divestment, asset monetisation proceeds at ₹47,000 crore; raises PSU dividend target to ₹69,000 crore

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Subscribe to enjoy similar stories. The government expects to bring in ₹47,000 crore through disinvestment and asset monetisation in FY26, which is lower than the ₹50,000 crore it expects to get in FY25, according to estimates in the Budget documents. The estimate, which has been categorised under 'miscellaneous capital receipts for FY26’ is higher than the revised estimate for FY25, which has been lowered to ₹33,000 crore, the documents revealed.

The government is also maintaining its strategy of not having a separate disinvestment target, which began with the Union Budget of February 2024. The lower estimate of FY26 compared with FY25 underscores the government’s approach of taking a limited number of assets to the market for strategic disinvestment and minority stake sales. Also read | Budget 2025: Who benefits and who doesn’t “Last year’s [general] elections slowed down the process.

My sense is asset monetisation will be pursued in a big way this year as they embark on the second phase," said Madan Sabnavis, chief economist at Bank of Baroda. The department of investment and public asset management (DIPAM) is going ahead with its strategic disinvestment of IDBI Bank, which will spill over to FY26 as financial bidders are identified and approved by the Reserve Bank of India. Stake sales in BEML, Shipping Corporation of India, HLL Lifecare Ltd, and Project & Development India Ltd are also ongoing, but most are progressing slowly.