Unlocking India's Potential: How CII's Bold Privatisation Blueprint Could Inject Rs 10 Lakh Crore into the Economy

It's no secret that the government's role in running every single enterprise has long been a topic of fervent discussion. Now, the Confederation of Indian Industry (CII) has thrown a rather ambitious idea into the ring, proposing a four-point privatisation roadmap that, if followed, could potentially inject a staggering Rs 10 lakh crore into the Indian economy by the time Budget 2026 rolls around. That’s a huge sum, isn't it? And it speaks volumes about the untapped potential they see in our public sector undertakings (PSUs).

So, what exactly does this blueprint entail? Let's break it down, because it's far more nuanced than just selling off a few companies here and there. It's about a strategic shift, a re-evaluation of where the government's energy and resources are best spent.

First up, and perhaps most crucially, CII is pushing for a crystal-clear, unwavering policy on non-strategic PSUs. The idea here is simple: if a business isn't deemed strategic to national security or vital public interest, the government should simply exit. Completely. No more tinkering, no more partial stakes; just a full handover to the private sector. This aligns beautifully with the 'minimum government, maximum governance' philosophy we often hear about, allowing the market to drive efficiency and innovation where it truly belongs.

Secondly, the plan calls for a laser-like focus on strategic disinvestment. This isn't about selling off everything willy-nilly. Instead, it advocates for the government to shed majority stakes, or even its entire holdings, in strategic PSUs—mind you, excluding critical areas like defence, atomic energy, and space. The real kicker here is the emphasis on transferring management control. It's about letting private players, with their agility and market-driven approach, take the reins and truly unlock the value these enterprises hold, rather than just being passive shareholders.

The third pillar revolves around aggressive asset monetisation. Think about it: many PSUs are sitting on vast tracts of land, unused real estate, and other non-core assets that are just lying idle, gathering dust. CII suggests creating a dedicated fund or agency to systematically identify and monetise these assets. Imagine the capital that could be generated from selling off these underutilised resources, especially from those PSUs earmarked for closure or full divestment. It's about making every asset count, transforming dormant wealth into dynamic capital.

And finally, a rather ingenious solution for a long-standing problem: the creation of a 'bad bank' or an Asset Reconstruction Company (ARC). Let's be honest, some PSUs carry a heavy burden of non-performing assets (NPAs) and stressed balance sheets. This makes them far less attractive to potential private buyers. A bad bank would effectively absorb these troubled assets, clean up the books, and make the underlying businesses much more appealing for sale. It’s like giving a fresh coat of paint and a deep clean to a house before putting it on the market—it just makes sense.

Ultimately, this isn't just about balancing the budget, though the Rs 10 lakh crore figure is certainly a tempting prospect for government coffers. It’s about so much more. It's about attracting vital private investment, fostering greater efficiency across the economy, reducing the government's fiscal burden, and perhaps most importantly, re-energising the Indian growth story. Will this comprehensive plan be embraced by Budget 2026? Only time will tell, but it certainly offers a thought-provoking, and potentially transformative, path forward.