The Cabinet on Thursday gave the \u2018in-principle\u2019 approval for strategic sale of the Centre\u2019s 52.63% stake in Rural Electrification Corporation (REC) to Power Finance Corporation (PFC). The deal, similar to ONGC\u2019s purchase of the government\u2019s stake in HPCL last year, would be crucial for the Centre to meet this year\u2019s ambitious disinvestment target of Rs 80,000 crore. It, however, will involve major market borrowings by the buyer PSU \u2014 in this instance, PFC \u2014 and so may put pressure on bond yields. Though the details of the deal, including the pricing methodology are to be worked by a ministerial panel headed by finance minister Arun Jaitley, the transaction, according to sources, is expected to fetch the Centre about Rs 14,000-Rs 15,000 crore, at a hefty premium of around 35% over RE\u2019s current market price. The minister\u2019s panel would work out the details of the transactions based on the recommendations of a committee of secretaries, Jaitley said after the CCEA meeting. Post-acquisition, REC would be a subsidiary of PFC. At the price of Rs 103.95 a share (BSE) on Thursday, sale of 52.63% stake in REC is worth around Rs 10,804 crore. For the sale of the Centre\u2019s HPCL stake to ONGC last year, reference valuation was at 14% premium, which fetched the Centre a whopping Rs 36,915 crore. The upstream oil firm financed the deal with market borrowing of Rs 25,000 crore.