Budget 2014: PSUs That Could to Go on the Block

Finance Minister Arun Jaitley could target a record Rs 70,000 crore in proceeds from asset sales when he unveils his maiden budget on Thursday.

Following are details of companies that could go on the block.

SAIL (state shareholding 80 per cent)

The government wants to sell 5 per cent of Steel Authority of India Ltd in the last week of July, people involved in the process said.

Marketing roadshows for the deal, worth about $340 million at current prices, will begin soon after the presentation of the budget on July 10, they said.

Coal India (89.7 per cent)

Coal India Ltd (CIL) is the world's top producer yet its failure to meet output targets means that the country is the third largest importer of coal.

Before the election, sources close to Prime Minister Narendra Modi's party had said he might restructure the business into smaller, regional units and open up the industry to foreign investors.

Now, according to official sources, the government is considering a direct sale of a 10 per cent stake that would be worth around $4 billion at current prices.

Hindustan Zinc (29.6 per cent)

The government would like to sell its entire minority stake in Hindustan Zinc, a subsidiary of London-listed Vedanta Resources Plc, India's largest mining and non-ferrous metals producer controlled by tycoon Anil Agarwal.

The stake, now worth $3.6 billion, was slated for sale last year but the deal was derailed by industry opposition.

Balco (49 per cent)

The government may also auction the 49 per cent it still owns in Bharat Aluminium Co Ltd. It sold 51 per cent a decade ago to Sterlite Industries, itself part of Mr Agarwal's Vedanta group.

NHPC (86 per cent)

A 10 per cent stake in hydroelectric power producer NHPC is being considered for sale.

Hindustan Aeronautics (100 per cent)

The government is also considering selling a 10 per cent stake in Hindustan Aeronautics Ltd, or HAL, in addition to raising the 26 per cent cap on foreign participation in joint ventures in the defence industry.

Power Finance Corp (72.8 per cent)

Power Finance Corporation, whose role is to finance power projects, was floated in 2007 and the government is considering selling a further 5 per cent stake.

Rural Electrification Corporation (65.6 per cent)

Floated in 2008, REC promotes and funds rural electricity projects. The government is considering to sell a 5 per cent stake in it.

Copyright @ Thomson Reuters 2014