The government is likely to sell its residual stake in privatised firms like Videsh Sanchar Nigam Ltd and CMC to strategic acquirers soon, Divestment Minister Arun Shourie said on Monday.

"That has certainly been a proposal in our mind. We have done some work on VSNL because the government is fast loosing the value of its holdings," he told reporters in New Delhi on the sidelines of a stamp release function.

"Where the companies have stabilised and the government is convinced that under the new management, the very firms are doing well, there is no reason for the government to continue," he said.

The government currently holds just over 26 per cent in CMC and VSNL, which were last year sold to the Tatas. At current market prices, the stake sale of the two companies could fetch the government close to Rs 1100 crore (Rs 11 billion).

"So for that reason, we have examined the cases -- CMC and VSNL -- and I hope this matter comes up before the Cabinet Committee on Divestment in one form or the other," he said.

As per the agreement to sell its stakes to strategic investors, the government has the option to sell its residual stakes within three years of divestment.

"IPCL is also one of the concerns. But we have to study these cases, which are maturing," he added.

Asked whether CMC would be the first company where the government will sell it's entire stake, Shourie said, three-four notes were being prepared and they will have to get the required nod from the inter-ministerial group and the Committee on Secretaries.

And there may not be time to prepare a general policy paper as it would involve another round of consultations. So if even one case comes up, eventually the general policy issue will be considered, he added.