UK to start asset sales with Chunnel link - report

A passenger asks a Eurostar conductor for directions at St. Pancras International station in London February 11, 2010.

LONDON (Reuters) - The government is aiming to kickstart a round of crucial asset sales with the auction of the Channel Tunnel rail link, estimated to raise 2 billion pounds, according to the Independent on Sunday.

The Department for Transport (DfT) and rail link owner London & Continental Railways (LCR) plans to distribute a sales document to potential bidders ahead of the emergency budget on June 22, the newspaper said.

The privatisation of High Speed 1 (HS1) -- the railway Eurostar uses from London to the Channel Tunnel -- would provide a much needed boost to the new coalition government as it tackles the UK's 167 billion pound annual debt.

Potential bidders have been eying the assets, which include Groupe Eurotunnel, while Network Rail is reported to be considering whether or not to launch a bid on its own or as part of a consortium.

A spokesman at the Department for Transport declined comment but said "an announcement will be made in due course."

(Reporting by Lorraine Turner; editing by Karen Foster)