Tata withdrawal will not hit FDI

"Now if one major proposal is withdrawn do you think it will effect the whole lot of foreign direct investment proposals ", Sinha said.

When asked the reason for the final withdrawal of the Tatas from the much talked of airline project, Sinha quipped this should be discussed with the Civil Aviation Minister, Ananth Kumar. "You talk to Ananth Kumar", he said.

"There are some projects which are delayed or which are expedited or which are held up due to some reasons. That does not mean it will adversely affect the inflows of FDI into the country", Sinha said.

The Tatas have charged successive governments with holdingback clearance for the project for over three years and announced withdrawal from the project yesterday.

Sinha also took exception to what he called some distortion in a section of the media about his statements on revival of the industry from September.

“Let me clarify what I had said was that the budgetary proposals will start getting implemented more speedily from September 15. I did not say that the government will bring a new budget or a new set of measures for giving a boost to the economy,” he said.

Sinha refused to comment on the government’s view of going ahead with the disinvestment process in the wake of adverse international conditions.

On a query whether the government was considering relaxing the non-performing assets (NPA) regarding loans to small and other industries, Sinha quipped “the government would be working on so many things”.

He said the decision to raise and rationalise duty drawback on exports will give an impetus to exports, especially in the garment sector.

Asked onthe 7.71 per cent growth in exports registered in July, the Sinha said he was always optimistic of a turnaround of the economy in various sectors.