Centre's Expects To Raise ₹1.79 Trillion From GAIL Gas IPO And Coal India Subsidiary IPO - Key Details

India eyes at raising Rs 1.79 trillion from selling centre's stake in state-run companies in sectors such as railway, power, petroleum and natural gas, aviation and coal sectors, according to NITI Aayog, citing a Reuters report. 

The expected timeline for this large-scale stake sale is 2029/30 financial year. The IPO push is part of efforts to raise $183.7 billion by monetising state assets over the next four years, according to NITI Aayog's latest report. 

They are part of Prime Minister Narendra Modi's second four-year plan for asset monetisation, after the first round raised Rs 5.3 trillion rupees by 2024/25, roughly 90% of the centre's Rs 6 trillion target.

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Earlier, the central administration has struggled to garner funds via the privatisation route, therefore, the change in approach has led to monetising assets and subsidiaries of these companies to raise capital for reinvestment.

The funds generated as a result of asset monetisation are kept with firms to reinvest limiting financial burden on the administration to capitalise these firms 

Meanwhile, minority stake sales and privatisation form an important part of the government's overall plan to reduce its budget gap.

Centre's Renewed Push To Sell Stake In State-Run Firms

Earlier, the centre introduced an offer for sale (OFS) up to a 5% stake in the public sector undertaking Bharat Heavy Electricals Limited (BHEL), which is considered to be one of the biggest engineering and manufacturing enterprise functioning in India. 

Under the new plan, the government aims to divest stakes in seven railway companies through IPOs that could potentially garner Rs 837 billion by 2030, the report said.

It targets raising 170 billion rupees of that through stock market listings in the coming financial year starting April 1, 2026, the report said, without specifically naming entities.

It also plans to list subsidiaries of state-run power firms to raise 310 billion rupees over the next four years, alongside Rs 483 billion from initial public offerings of subsidiaries of Coal India and the renewable energy assets of NLC India Limited.

The Airports Authority of India will sell its stake in one subsidiary, and four airports that it owns through joint ventures with private partners.

In the financial year 2027/28, the government plans to list GAIL GAS, a subsidiary of GAIL (India) to potentially raise 31 billion rupees, NITI Aayog said.