Even though the contours of the disinvestment policy are not finalised, the government has flagged off plans for three companies: Rural Electrification Corporation (REC), Satluj Jal Vidyut Nigam (SJVNL) and Engineers India Limited (EIL) for divestment.

Sources said this proposal will be sent to the Cabinet for approval in the next fortnight. As per the plan, the government may divest 5 per cent stake in REC and 10 per cent in EIL. This is expected to rake in Rs 860 crore from REC and Rs 650 crore from EIL, as per current market prices. The government holds 81.82 per cent and 90.40 per cent in REC and EIL respectively.

Meanwhile, plans are also on for divesting 10 per cent of the Central stake in SJVNL. The company is a joint venture between the state government of Himachal Pradesh and the Central government with the Centre holding 25 per cent stake. About Rs 1,200 crore is expected to come in from its divestment.