The existing eight to nine excise rates would `coalesce' into three rates which would be a `enormous step forward' in simplifying excise duties, he told reporters here.

Sinha said the proposed broad classification -- mean rate, merit rate and demerit rate -- would take the pattern of consumption into account before fixing the rates.

He also noted that six working groups on excise and customs had been formed to prepare the ground for `major initiatives' that required to be taken in the next year's budget. The groups were expected to submit their reports before October 31, he said. Addressing an interactive session organised by the Confederation of Indian Industry (CII) earlier, Sinha said a task force had been set up under the special secretary banking to sort out the problems of thenon banking finance companies. The task force will submit its report by September 15 and will recommend at relaxation in some of the stringent measures put forth by the Reserve Bank.