Declining to reveal the ideal rate of interest he would propose before the finance minister, Hegde said, "We have to provide a level playing field to our exporters when they deal with other countries. Whereas other countries have so many facilities, India has too many taxes and levies," he said.

Inaugurating a seminar on `Agri-business: Emerging challenges and strategies for the next millennium,' he said the commerce ministry had decided to bring down the threshold limit on investment in the production of engineering goods in the small-scale sector (SSI) to Rs 1 crore from Rs 20 crore. Due to oversight, engineering goods in the SSI sector were not included in the Exim Policy announced earlier thisyear. Expressing an optimism not shown either by exporters or industry chambers regarding export growth, Hegde said that despite sanctions against India and a global recession, the country would achieve the export target of 20 per cent for 1998-99, provided top priority was accorded to this sector.

While India could become a market leader in the export of agri products, the main issue now bothering the country was the wide fluctuations in the prices of agricultural commodities. There was no stability or security in terms of product prices, he added. The seminar was organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) in association with the Confederation of Indian Food, Trade and Industry, the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and the Greater Mysore Chamber of Industry. Addressing members of the Institute of Chartered Accountants later in the day, Hegde called for a simplification of procedures and rules with regard to various taxes. Thoughamendments are made in various acts every year, the tax payers continued to be harassed. It was high time that simpler procedures were framed.

Hegde said that there was need for producing quality products so that Indian goods were of international standard as there would be free trade after 2003. Meanwhile, Hegde asked chief minister JH Patel to step down and find a suitable replacement to run the state if he could not change his government's style of functioning. He warned the government that major companies will take their large investments elsewhere if it does not break out of its existing lethargy.

On the issue of the controversial international airport, he said, "I have no locus standi to mediate with the Tatas on the issue of their pulling out of the international airport project proposed at Devanahalli." Speaking to the media here on Saturday, Hegde blamed senior Karnataka politicians both at the centre and state levels and the state government for the project failing to take off.

Refuting thereported statement of Karnataka chief minister JH Patel that barring Microsoft, no other software company had left the state, Hegde said Oracle, IBM and Silverline were in the process of leaving Karnataka for Hyderabad. He further observed that the high-power committee on clearing projects had not met in the last six months.

Condemning the recent power tariff hike announced by the Karnataka Electricity Board, Hegde said it was the highest in Karnataka among all states in the country.