Monday, February 7 2005 16:14 Hrs (IST) - World Time -

New Delhi: Ahead of Budget for 2005-06, India Inc has asked Centre to up disinvestments target to at least Rs 25,000 crore even as they and certain economists view that the proceeds of the same should go for the restructuring of PSUs and not merely to raise revenue.

"Disinvestments programme should be quickened," was the reply from CII (Confederation Of India Industry) to a questionnaire sent by sources in New Delhi.

Similarly, the other industry chambers like FICCI (Federation of Indian Chambers of Commerce) and ASSOCHAM have said that the disinvestment programme should be speeded up.

FICCI said that the proceeds should go to a fund dedicated to socio-economic development of rural India and that in all the non-strategic profitable companies, disinvestments should be upto 74 per cent and 49 per cent in the case of strategic companies.

ASSOCHAM said that it would welcome any move to increase the disinvestment target and offloading the Government's equity in State-owned enterprises, particularly the profitable ones, adding it would be one of the ways to help the Centre to rein in the revenue deficit.

Finding that disinvestment was "tricky and politically sensitive issue", the National Council for Applied Economic Research said disinvestment should be quickened and widened but there should be a negative list and for the rest of the companies, the IPO route should be selected.