New Delhi: India Inc has strongly favoured disinvestment of Government-owned companies saying the Budget should set a target of sell-off proceeds for 2004-05.

Responding to a questionnaire, industry bodies and corporates said they wanted tax breaks for India Inc to invest heavily on infrastructure and agriculture.

Indian industry also demanded a transparent policy in the Budget to attract $ 15 billion FDI annually, as targeted in the Common Minimum Programme of the UPA (United Progressive Alliance).

On the contentious issue of disinvestment, apex industry chambers CII, Ficci and Assocham were unanimous that Finance Minister P Chidambaram should set a target amount for receipts from sell-off process.

"Government should go ahead with disinvestment of its shares and privatisation. The proceeds should go to a Fund dedicated exclusively for socio-economic development of rural India. The disinvestment target should be at least Rs 25,000 crore per annum," Ficci said.

CII left the decision to give up or dilute ownership in PSUs with the Government but said, "The decision to privatize or disinvest should not be driven by the need to raise revenue. Government need to set a target for disinvestment."

"Budget should definitely have a disinvestment target," said Assocham.

Favouring privatisation of non-strategic profit-making PSUs, the PHDCCI said, "Government should address the vital issue of disinvestment as the rate of return on PSUs is below the opportunity costs of capital invested."