'Hike divestment target to Rs 25,000cr'

India Inc has asked the central government to increase the disinvestment target to at least Rs 25,000 crore even as industrialists and economists view that the proceeds should go for the restructuring of PSUs and not merely to raise revenue.

"The disinvestment programme should be quickened," was the reply from CII to a questionnaire sent by PTI. Similarly, other industry chambers like Ficci and Assocham have said the disinvestment programme should be speeded up.

Ficci said the proceeds should go to a fund dedicated to socio-economic development of rural India and that disinvestment should be up to 74% in all non-strategic profitable companies and up to 49% in the case of strategic companies.

Assocham said it would welcome any move to increase the disinvestment target and offloading 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 (NCAER) said disinvestment should be quickened and widened, but there should be a negative list and the IPO route should be selected for the  rest of the
companies.