The government will sell a stake of up to 10 per cent in state-run Coal India through an auction on the stock exchanges on Friday.

That stake would be worth as much as $3.9 billion, or nearly Rs 24,000 crore, at current market prices.

The government, which owns close to 90 per cent of the coal miner, is selling 31.58 crore shares with an option to sell another 31.58 crore, according to a notice to the exchanges on Wednesday.

The stake sale is part of a government plan to raise Rs 58,425 crore through share sales in public sector units and other firms.

Coal India stake sale is crucial to the government's Budget promise of narrowing the fiscal deficit to 4.1 per cent of GDP in the current fiscal year.

So far in this fiscal, the government has just raised nearly Rs 1,700 crore through 5 per cent share sale in steel maker SAIL.

Proposed share sale in state-run Oil and Natural Gas Corporation could also significantly boost the government's divestment programme. Oil Minister Dharmendra Pradhan on Wednesday said that the share sale in ONGC is scheduled for this fiscal though falling crude prices pose a challenge.

The proposed 5 per cent stake sale in ONGC could fetch the government nearly Rs 15,000 crore at current prices.