The Centre is reportedly planning to sell stakes in several public sector companies, including Life Insurance Corporation of India, Hindustan Zinc Limited and some state-owned banks, as it looks to cushion the impact of higher oil prices on government finances and keep the fiscal deficit under control.
According to reports, the move comes after the recent surge in global crude oil prices during the Iran-West Asia conflict, which put pressure on government finances. Although oil prices have eased in recent weeks, the government is reportedly looking to create additional fiscal room in case energy prices become volatile again.
Reports suggest the government has identified eight public sector companies for stake sales over the coming months. A follow-on share sale in LIC could reportedly raise around ₹10,000 crore, while another stake sale in Hindustan Zinc may fetch about ₹5,000 crore.
The Centre is also reportedly considering inviting fresh bids for the sale of its majority stake in IDBI Bank after an earlier attempt failed to attract sufficient buyer interest.
Officials are reportedly reviewing investor demand, pricing and timelines for the proposed stake sales. The government has already raised nearly $2 billion through disinvestment during the April-June quarter as part of its ₹80,000 crore target for FY27.
However, there has been no official confirmation from the Finance Ministry regarding the reported stake sale plans.
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