New Delhi, Mar 5: The government on Wednesady said it was open to revisit the restrictions imposed on bringing money raised through Commercial Borrowings (ECBs) to India, erected in the wake of unbridled capital inflows, if the situation that led to rupee appreciation eased.

"Only restriction (on ECB), that we have placed, which I hope would be temporary, is that you must spend the money abroad on capital expenditure... If things get better, we shall certainly revisit these restrictions," Finance Minister P Chidambaram said during his post-budget interaction with industry body FICCI. He said restrictions on ECBs were imposed because the government was struggling to moderate capital inflows in most part of last year.

In fact, it is the industry itself which complained about the appreciating rupee, because of which measures were taken to moderate capital inflows, he said, adding that now the industry was complaining about restrictions on these inflows.

"You (the government) are damned if you do, you are damned if you don't do," he said.

He asked the industry to understand RBI's compulsions in this regard.

"RBI Governor's task is an unenviable task. He has to balance a number of interests, especially containing inflation, managing money supply and maintaining monetary and financial stability. I think RBI has struck a balance (with regard to ECBs)," he said.

The government had announced that not more than USD20 million raised through ECBs can be brought back to India for rupee expenditure purposes. To remit even 20 million dollars, prior approval of the RBI is needed.

Finance Minister on Wednesday urged companies not to increase prices despite a mismatch in supply and demand in some sectors, asking them to help fight inflation amid a global rise in commodity prices.

Palaniappan Chidambaram told a business conference that industry should instead improve efficiency: "Manufacturers have to be more competitive and hold the price line."

The minister said the Monopolies and Restrictive Trade Practices Commission had in recent months passed two judgements charging cement makers of acting like a cartel.

He urged companies in sectors such as cement, automobiles, pharmaceuticals and paper to lower prices while adding volumes to meet an expected rise in demand this year.

Industrial output rose 9 percent during April-December period from a year earlier, moderating from a 11.2 percent rise in the same period of 2006, as a tight monetary stance crimped consumer demand and prompted firms to cut output.

Inflation has been inching up and stood at 4.89 percent in the 12 months to Feb. 16, higher than 4.35 percent in the previous week, following a rise in food prices and after the government revised retail fuel prices.

Chidambaram said tax cuts included in the budget and an increase in the income tax exemption limit would spur demand.

He said the government was willing to help exporters hit by a rise in the value of the rupee and urged state government to reimburse all local taxes paid by exporters.