Admitting that many sectors were not doing well, the finance minister said he will consider incentives for sectors like steel, telecom, cement and capital goods. ``We had a long interaction with the steel industry. We'll do whatever is possible to bail out such sectors,'' he said. Sinha addressed separate meetings of exporters, industrialists and capital market pundits to explain his plan of action and get a feedback of the policies.

However, Sinha refused to admit that Indian economy is going from bad to worse. ``We talk about a growth rate of 5 to 6.5 per cent this year. At the same time, many of the developed and emerging countries are witnessing negative growth rates. This is an achievement,'' he said, adding, ``but the international developments are not favourable to us. However, he said the country which has withstood the crisis buffeting other Asian countries has remained ``a region of tranquility'' in the economic turmoil that affected the entire continent.

The finance minister specifically pointed out the agricultural sector for the good times ahead. ``Agriculture is expected to show 4 per cent growth in the current year. I had been to Punjab, Andhra... farm output from most of the places are favourable. When people talk about agricultural growth pushing up industrial growth, this is significant.'' Sinha vowed to restrict government expenditure to the budget estimate, but maintained that revenue should also match this expenditure.

On the capital market front, Sinha announced that the government is planning to offer shares to the small investors in the PSU disinvestment programme. ``The shares would be offered to the public along with an GDR offer to the international investors. The shares of PSUs would be offered at the current market price so that we can bring back more small investors into the capital markets,'' he said while addressing a meeting organised by the All India Association of Industries (AIAI).

The minister said his ministry was trying to push through the first public sector disinvestment by the end of the current month. It is expected to begin with Container Corporation of India's (Concor) offering on September 28. ``Our ministry is looking into the possibility of expanding the list of public sector undertakings for disinvestment and strategic sale. This entire process of disinvestment and strategic sale will have to be completed at the earliest," he said.

Admitting that the primary market is in bad shape, he said: "I appreciate that the issue of revival of the capital market needs immediate attention which is why I am willing to mop up funds even at these low prices. I hope this will go a long way in bolstering the markets.'' Sinha promised to check with the SEBI and ministry officials about the pending reforms in the market.

Sinha also felt that urgent steps were needed to boost exports, which was a national priority. Addressing a meeting organised by the Federation of Indian Exporter Organisations (FIEO), Sinha said the government would reduce the period of duty payback due to exporters by a month to 60 days and also pay penal interest from the 61st day.

He said the decision to pay dues to exporters under various duty payback schemes had already been taken by the government and an amendment to the law in this regard was pending. He said simplification of procedures was more important than duty or tax concessions to exports. ``We are not in combat with each other. I am pleading with custom and excise officials to be facilitators and not road blocks,'' Sinha said, adding that the ministry was taking a re-look at procedures with the goal of export promotion and revenue collection.

The zero growth in exports witnessed in the first quarter was also likely to increase the current account deficit to 2-2.4 per cent of GDP, he added. Procedures and guidelines relating to exports would be simplified and departmental rules should not be allowed to become a ``bottleneck'' hampering the growth of trade, he said.

He further said the country has not defaulted on its overseas commitments unlike many other developed and developing countries. ``Despite economic sanctions followed by Moody's downgrading, we have successfully mobilised over $ 4.18 billion through Resurgent India bonds (RBI) at 7.75 per cent. No other developing country will be able to raise huge funds at such a low rate," he said.

The government is working towards radically overhauling the indirect tax structure by limiting excise duties to just three slabs and correcting the customs duty anomalies to ensure that raw material is not subject to a higher duty than is leviable on intermediaries and finished goods, he said. The revenue department has already been asked to identify customs anomalies for the purpose. Also, the Confederation of Indian Industry has been asked to arrive at "intra-sector consensus" on such moves, failing which, the finance minister said, the ministry will go ahead with its rationalisation anyway.

Reconsider airline project: Sinha

MUMBAI: Finance Minister Yashwant Sinha has asked the Tatas to reconsider their decision to revive their airline project. The minister made this comment when industrialists expressed concern over the BJP-government's shabby treatment to the project and the wrong signals being sent to the foreign investors.

Sinha said the Foreign Investment Promotion Board (FIPB) cannot be blamed for the delay in clearing the airline project. "There were objections to the project from several parliamentarians, and the Tatas must understand that in such cases some delay is inevitable as the government must hear out all concerned," he said.