The government is planning to raise ₹80,000 crore through the sale of stakes in public sector undertakings (PSUs) under the Indian Railways by the end of the 2029–30 financial year, officials said on Monday.
The proposed divestment strategy forms part of the broader asset monetisation and disinvestment agenda to unlock value from government-held enterprises while mobilising resources for infrastructure development and fiscal consolidation. Railway PSUs identified for potential stake sales include subsidiaries and entities operating in engineering, manufacturing, logistics and ancillary services.
Officials said that the roadmap for PSU stake sales is being formulated with an emphasis on timing, market conditions and strategic investor interest. By leveraging equity markets and private capital, the government aims to generate resources that can be used to accelerate investment in rail infrastructure projects, including track expansion, rolling stock modernisation and logistics capacity enhancement.
The plan includes phased offerings over the next several years, subject to approvals, regulatory clearances and market receptivity. Authorities indicated that the intended divestments will be structured to balance government ownership objectives with opportunities for broader shareholder participation and investor diversification.
Market analysts noted that raising funds through PSU stake sales can help reduce budgetary pressure while enabling public enterprises to access fresh capital for growth initiatives. The mobilisation of ₹80,000 crore from railway PSUs is expected to complement other financing channels such as infrastructure bonds, asset monetisation vehicles and public-private partnerships.
The railways sector, which has been witnessing increasing investment for capacity augmentation, electrification, digital upgrades and logistics integration, stands to benefit from enhanced funding flexibility. Enhanced resource mobilisation through equity sales may also support strategic initiatives such as dedicated freight corridors, high-speed corridors and technology-enabled infrastructure solutions.
Officials said that the detailed list of PSUs, timelines for offerings and quantum of stake to be divested will be communicated in due course as part of the government’s annual and medium-term fiscal planning processes.
The strategic move underscores the government’s continued focus on leveraging public assets to catalyse investment in key infrastructure sectors and improve the efficiency of public enterprises within evolving market frameworks.
