Wednesday, November 9 2005 12:40 Hrs (IST) - World Time -

Mumbai: Finance Minister P Chidambaram today (Nov 9, 2005) said that the Government is looking at disinvesting small portion of equity in profit making public sector enterprises other than the 'Navratnas'.

"We have had discussions about disinvesting small portions of equity in selective profit making public sector enterprises other than the Navratnas," Chidambaram told reporters on the sidelines of IFC-FT South-South Conference.

The fall in Rupee is not a cause of concern for the Government at the moment, he added. "We have always said that orderly movements in both ways is acceptable. It is only disorderly movement which should cause concern," Chidambaram said.

"The rupee has over the past few months depreciated against the Yen, Pound and Euro. It has only appreciated against the dollar and that is because the Dollar has appreciated very strongly against the Euro," he added.

Asked on whether fuel prices would have an impact on inflation, Chidambaram said that it was likely to have an effect.

"As we said before, the pass through of fuel prices will have an impact on inflation. Inflation is roughly now at around 4.4 per cent. RBI Governor and I have said that we expect inflation to be around five per cent and that is unavoidable," Chidambaram said.

The Finance Minister was also confident about sustaining trade deficit at the current levels.

"We can sustain trade deficit at the current levels which means that capital goods are imported and that is good," Chidambaram said.