The government is preparing to launch an Exchange Traded Fund (ETF) comprising scrips of eleven bluechip state-owned companies in a bid to garner Rs 3,000 crore this financial year.

The Empowered Group of Minister (EGoM), headed by Finance Minister P.  Chidambaram, held a meeting on Friday to finalize the contours of the ETF.

After the meeting, Disinvestment Secretary Ravi Mathur told reporters, "This EGoM was to finalise the basket for PSU ETF.  This basket will comprise of 11 companies, all bluechip PSUs.  We expect to raise around Rs 3,000 crore."

The government-run companies which would form part of the planned ETF basket are ONGC, Coal India, GAIL, Container Corp, Power Finance Corp, Power Grid, REC, Oil India, Indian Oil, Engineers India and Bharat Electronics.

ONGC will reportedly have the highest weightage of 25 per cent with 89 shares in the ETF basket; while Coal India will have a weightage of 17.21 per cent with 61 shares.

The CPSE ETF would help the government to add to the disinvestment kitty.  The government targeted to raise Rs 40,000 crore from disinvestment this fiscal but has so far raised only Rs 3,000 crore through PSU stake sale.

The Department of Disinvestment will soon file all the necessary documents with market regulator Sebi and the ETF will likely be launched within a month.