Factbox - State firms to go on the block

NEW DELHI (Reuters) - Finance Minister Arun Jaitley could target a record 700 billion rupees in proceeds from asset sales when he unveils his maiden budget on Thursday.

Following are details of companies that could go on the block. For related budget story click http://in.reuters.com/article/2014/07/06/india-budget-modi-privatisation-psus-idINKBN0FB03B20140706

** STEEL AUTHORITY OF INDIA (state shareholding 80 percent)

The government wants to sell 5 percent 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, the people said.

** COAL INDIA (89.7 percent)

Coal India Ltd is the world's top producer yet its failure to meet output targets means that India 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, say official sources, the government is considering a direct sale of a 10 percent stake that would be worth around $4 billion at current prices.

** HINDUSTAN ZINC (29.6 percent)

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.

** BHARAT ALUMINIUM (49 percent)

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

** NHPC (86 percent)

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

** HINDUSTAN AERONAUTICS (100 percent)

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

** POWER FINANCE CORPORATION (72.8 percent)

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

** RURAL ELECTRIFICATION CORPORATION (65.6 percent)

Rural Electrification Corporation, floated in 2008, promotes and funds rural electricity projects. The government is considering a 5 percent stake sale.

(Reporting by Douglas Busvine; Editing by Manoj Kumar and Mark Bendeich)