The Indian government may sell a further 17% stake in power equipment maker, Bharat Heavy Electricals (BHEL), a report has suggested.

This would reduce the government's stake to 51%, allowing it to retain control.

The government has had few successes with its high profile privatisation programme and the report in India's Financial Express sent the company's shares briefly higher.

"Every other effort they have made at privatisation or pretty much every other effort has fallen flat on its face because of the number of vested interests," John Band, executive director at A.S.K Raymond James, told the BBC's World Business Report.

Hands-off government

With its 13 manufacturing facilities across India, the company has a 64% stake in the Indian power equipment market.

"Though we are open to the idea of diluting equity in Bhel, even this fiscal [year], it looks more likely that the process will begin only next fiscal," heavy industry minister Manohar Joshi told the Financial Express newspaper.

Any sale is likely to attract a lot of interest.

"It is basically a good company which runs without too much government interference and has a big share of the power market," Band said.

Its shares rose as much as 2.3% to 155.10 rupees on reports that the government plans to sell a 17% stake. The stock closed 4.2% lower on the day at 145.25 rupees.