Interacting with the industry a day after presenting the Budget in Parliament, Chidambaram particularly asked cement firms to cooperate with the government in containing prices.

However, his appeals seems to have fallen on deaf ears as cement manufacturers increased prices by Rs 12 per bag.

Defending differential duty structure announced in the Budget, he said the government would reward those companies which hold the price line and tax at higher level those which use the opportunity of huge demand to make huge profits.

In the Budget, presented in Parliament yesterday, Chidambaram cut excise duty from Rs 400 to Rs 350 per tonne if cement is sold at a retail price of up to Rs 190 per 50 kg bag and raised the duty to Rs 600 per tonne if the same quantity is sold at higher than Rs 190.

Pointing out that India Inc no longer needed government interventions, he asked the industry to help in increasing pace of growth in farm sector and rural areas.

"Just imagine what can happen to industry and services if agriculture grows at 4 per cent... It is in your interest that agriculture must grow at 4 per cent," Chidambaram said.

He also indicated there would not by any withdrawal of the proposal to widen the FBT net by including shares given by companies to their employees.

"ESOPs will be taxed. Full stop," he said, but added the government was yet to work out the method and the rate for FBT on Employees Stock Option Plans.