The actual realisation of central excise revenue for the first three months of this fiscal year amounted to Rs 2,480 crore, a shortfall of 28 per cent, while customs revenue fell short of meeting its target by 36 per cent, having realised only Rs 37 crore.

Sources said the finance minister was informed during a review meeting that the sluggish growth in production and clearance of important commodities and factories yielding higher revenue was a major constraint in achieving the target of Rs 9,269.5 crore in excise revenue.

Moreover, 186 manufacturing units had pulled down their shutters leading to a loss of Rs 191 crore in excise revenue, while 75 factories had shifted out of Mumbai accounting for a loss of Rs 109 crore.

Lower revenue collections were also due to the non-commissioning of any major factoryor capacity additions as well as the concentration of production and clearance for export by the existing units due to locational advantages and other incentives.