For fiscal year 2026-27, the government has estimated to collect ₹80,000 crore under MCR
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With successful completion of LIC and other OFS, government managed to collect over 3/4t of the budget estimates under Miscellaneous Capital Receipts (MCR) in first five months of the fiscal year. Now, the expectation is that overall collection will see new high in FY27 provided IDBI Bank strategic sale is completed.The term MCR has replaced disinvestment proceed and also been widened. Now, it includes proceeds from share sale (minority stake sale, strategic disinvestment or buy back) of Central public sector enterprises (CPSE) and mop up through asset monetisation. For fiscal year 2026-27, the government has estimated to collect ₹80,000 crore under MCR.Key contributorAs on date government has got over ₹62,000 crore that includes over ₹55,700 crore through government holding in various CPSE and private companies (through SUUTI) and over ₹6,300 crore through asset monetisation. The biggest contribution comes from LIC, where government got over ₹35,000 crore by selling part of its stake through OFS (offer for sale) through stock exchange,OFS is a mechanism that allows promoters or major shareholders of a listed company to sell their shares to the public through the stock exchange platform. It requires less documentation and is much faster than IPO (initial public offering) or FPO (follow-on public offering).Apart from LIC, data showed the government completed OFS in Central Bank of India (over ₹2,200 crore), Coal India (over ₹5,500 crore), NHPC (over ₹4,300 crore), NLC (over ₹1,200 crore), GIC (over ₹3,000 crore), IRFC (over ₹2,000 crore), Cochin Shipyard (over ₹1,700 crore) and Hindustan Copper (over ₹3,000 crore).Though the government has not disclosed how many OFS, it is planning to complete in FY27, indications are about a strong pipeline including some of the public sector banks and financial institutions. At the same time, there is also possibility of getting CPSEs such as Export Credit Guarantee Corporation (ECGC) and India Infrastructure Finance Company Ltd (IIFCL) listed on bourses.Government officials are tight-lipped over the name of the next CPSE to be listed as there is thinking that announcement in advance affects the current market price. They also say that timing of the OFS will be fixed keeping market situation in mind.Strategic saleAbove all these, there are indications that strategic sale (majority of share holding along with management control) in IDBI Bank could be completed soon. Various reports suggested that Canada‘s Fairfax Financial Holdings’ bid to acquire a 60.72 per cent stake in IDBI Bank from the government and Life Insurance Corporation of India (LIC), likely to be approved soon. Going by the current price level, the deal could give over ₹56,000 crore, taking total mop up under MCR much above the budget estimates.There are 68 CPSEs listed on stock exchanges. The value of government shareholding in these companies is over ₹22.80 lakh crore. Apart from these, 16 public financial institutions (banks and insurance companies) are also listed and the value of government shareholding in these institutions is around ₹19 lakh crore.These data give enough headroom for the government to go for minority stake sale and earn a significant amount of money. In many companies, the government needs to bring down its stake to achieve the norm of minimum public shareholding of 25 per cent in various CPSEs and public financial institutions. This will necessitate further OFS of CPSEs during the current fiscal year.Published on August 28, 2026
