"We are following a very proactive disinvestment policy. While I have put a figure of Rs 5,000 crore, my own estimate is that the way we are going ahead with disinvestment, I shall end up getting more money through disinvestment than what has been projected in the budget," he told Reuters in an interview. Sinha said the disinvestment programme for the current year, expected to begin in September, will take place in both domestic and foreign stock markets.

"The market conditions are not the best at this time. I am hoping things will improve. Simultaneously...we have a taken a decision that we shall disinvest at the market price," said Sinha, who was in Jaipur to attend his Bharatiya Janata Party's (BJP) national executive meeting. The minister said steps taken earlier this week by the Reserve Bank of India (RBI) tocontrol volatility in the rupee were sufficient.

"The impact of the steps on the market on Thursday and Friday are signs enough of the fact that they have had the desired impact," he said. Among other measures, the Reserve Bank on Thursday raised the cash reserve ratio for banks by one percentage point to 11.0 per cent starting August 29. The step was part of a package of measures to calm the market soon after the rupee fell to a historic low of Rs 43.70 against the dollar. The rupee strengthened soon to close on Friday around Rs 42.55/58 to a dollar. "My own feeling is that the steps taken to cool the market have generally been welcomed. Therefore it will not have any great impact on the interest rates," Sinha said. Sinha said he was determined to achieve the fiscal deficit target of 5.6 per cent of gross domestic product in 1998/99. The fiscal deficit was 6.1 per cent in 1997/98.

"Having projected a realistic fiscal deficit, I am absolutely determined to keep fiscal deficit at that level," he said. Theminister, asked how he saw the climate for foreign investors, said: "Whichever foreign investor I have met in the last few months, I found they have been very upbeat about India. Their commitment to India is total." Critics had raised doubts on India's investment climate after New Delhi conducted a series of nuclear tests in May, which attracted economic sanctions from the United States and Japan.

Sinha said he hoped foreign investment will continue to flow into the country. "The tremendous success of Resurgent India Bonds is a proof of the confidence that people have in India," Sinha said, referring to a bond issue for expatriate Indians launched by the government-controlled State Bank of India to boost foreign exchange reserves. By August 17, the bonds had collected $2.2 billion. The issue, due to close on August 24, involves bonds denominated in dollars, marks and sterling.