The government is mulling all options to attract foreign capital, including a sovereign bond issue, the union finance ministry said on Monday.

The Indian rupee has been under pressure, while the government is struggling to attract foreign investment into the country. A sovereign bond issue will lead to more dollar inflows, which would help rupee regain its lost strength.

The finance minister said in a statement, "As the finance ministry has said repeatedly, all options [including a sovereign bond issue] are on the table and are examined from time to time."

The statement came after some media reports suggested that that the government is no longer considering a sovereign bond issue as an option. But, the ministry said any such reports were without any basis.

The government has not been very interested in bringing out a sovereign bond issue because it could push up the country's overseas debt as well as interest load.

But, the steep decline in the value of rupee has escalated the urgency for bold measures to attract foreign capital to help support the local currency.

Around two weeks back, the rupee slipped to its record low of 61.21 per dollar, while the country has long been strolling to arrest its widening fiscal deficit. In the last fiscal, deficit widened to 4.8 per cent of the country's gross domestic product, far wider than the acceptable limit of 2.5 per cent.