Chennai: The union government is planning to dilute its stake in the country's premier passenger car company at least by 5 per cent in near future.

The government holds 18.28 per cent stake in the Rs144.46 crore equity of the car company. Only recently the government divested 27.5 per cent in the company, when the later came out with an initial premium public offering (IPO).

According to the finance ministry officials, the move is to piggyback on the favourable market conditions and mobilise the much needed resources.

The government is also planning to divest up to 5 per cent stake in Bharat Aluminium Company Limited (Balco) and National Thermal Power Corporation Limited (NTPC). NTPC has recently filed its draft prospectus with the Securities and Exchange Board of India (SEBI).

In his budget speech, the finance minister P Chidambaram had said that the government hopes to raise around Rs4,000 crore through selective share sales to invest the proceeds in the social welfare measures.

The finance minister has also proposed to set up the Board for Reconstruction of Public Sector Enterprises (BRPSE) to suggest measures to reconstruct the public sector enterprises.