Centre’s focus shifts from selling PSUs to earning more from them

1 MARCH 2026

Shift from Disinvestment to Asset Monetisation

Although the Union Government launched a revamped disinvestment policy in 2020, its approach has gradually shifted from selling public assets to maximising returns from them.
The recent launch of National Monetisation Pipeline (NMP) 2.0 signals this continued shift.

What Was the Original Policy?

Under the Public Sector Enterprises (PSE) Policy 2021, the government stated that it would:
Exit non-strategic sectors
Retain minimal presence in strategic sectors
Pursue strategic disinvestment and privatisation
Prime Minister Narendra Modi had said in 2021 that the government has “no business to be in business.”
The policy was overseen by the Department of Investment and Public Asset Management (DIPAM).

Falling Disinvestment Revenues

Disinvestment revenue trend:

2022–23: ₹35,294 crore (brief surge)
2023–24: ₹16,507 crore
2024–25: ₹10,163 crore
2025–26 (so far): ₹15,562 crore
The government even removed a separate “disinvestment” heading in the Budget, merging it under “Miscellaneous Capital Receipts.”
This means it no longer sets annual disinvestment targets.

Why the slowdown?

Rise in Dividend Income

Instead of selling stakes, the government is now asking CPSEs to pay higher dividends, improve efficiency and restructure capital.
Dividend receipts (excluding RBI and PSU banks):
₹39,750 crore (2020–21)
₹74,128 crore (2024–25)
₹59,730 crore (2025–26 so far)
This reflects a strategy of extracting value while retaining ownership.

National Monetisation Pipeline (NMP)

Targets: