India Targets $19.7 Billion via State-Run Firm IPOs by 2030
India is accelerating its transition toward a high-efficiency economy with the launch of the National Monetisation Pipeline (NMP) 2.0. This second phase, spanning from fiscal year 2026 to 2030, sets an ambitious target to generate 16.72 trillion rupees.
This figure represents a massive 2.6-fold increase over the previous pipeline, underscoring the government's aggressive push to unlock value from existing brownfield infrastructure. Approximately 5.8 trillion rupees of this total is expected to come from private sector investments.
A critical component of this drive is the 1.79 trillion rupees (approximately $19.7 billion) earmarked for Initial Public Offerings (IPOs) of state-run firms by 2030. The railways sector leads this effort, with plans to divest stakes in seven companies to raise 837 billion rupees. For the upcoming 2026-27 fiscal year alone, the government targets 170 billion rupees from new market listings.
The power sector is another heavy lifter, with 310 billion rupees projected from the listing of various subsidiaries. This includes high-profile units like NTPC Green Energy, which is preparing for a significant market entry to fund its 60-GW renewable energy target. Coal India and NLC India are also expected to contribute 483 billion rupees through the public offering of their subsidiaries and green energy assets.
Beyond energy and transport, the aviation and petroleum sectors are key pillars of the plan. The Airports Authority of India is scheduled to sell stakes in its subsidiaries and joint ventures, while GAIL GAS is positioned for a 31 billion rupee listing in the 2027-28 window. These moves are designed to shift public enterprises from traditional state management to a "value creation" model.
The momentum is supported by a surge in the PSU sector's market performance. The combined market capitalization of listed public firms has soared from 12 trillion rupees in 2020 to nearly 69 trillion rupees as of early 2026. This growth, driven by cleaner balance sheets and improved corporate governance, now accounts for roughly 15% of India’s total equity market value.
Investors are keeping a close watch on these developments as the government simplifies processes to make asset monetisation seamless. By reinvesting these proceeds into the National Infrastructure Pipeline, the state aims to maintain a real growth rate near 7% while modernizing core sectors without increasing fiscal strain.