The Brazilian government proposed on Monday the privatization of the country's largest power company, Eletrobra, as the government has been struggling to tackle budget deficit.

Eletrobras, with more than 24,000 employees, is the largest power company in Latin America and is among the largest clean energy firms in the world.

The Ministry of Mines and Energy announced that it will formally request reduction of the government's participation in the company.

The Brazilian government currently holds a 51 percent voting stake in Eletrobras. According to the ministry, there will be a share capital increase in the company, which will make the government's stake fall to 47 percent.

With the measure, the government aims to raise 20 billion reals (6.3 billion US dollars).

The government said that the privatization will enable Eletrobras to generate profit instead of making losses, without giving further detail.

"The government will remain a shareholder, receiving dividends over time. The company will generate profit instead of making losses, which will benefit state and local governments with the increase in tax collection," the ministry said.

Eletrobras' market value is estimated at 19.5 billion reals (6.1 billion dollars). The company currently registered a net debt of 38.4 billion reals (12.1 billion dollars) in the second quarter of 2017.