The Hindu : Front Page : Left opposes disinvestment in 35 public sector units

Online edition of India's National Newspaper
Thursday, Oct 28, 2004

Front Page

Front Page

Left opposes disinvestment in 35 public sector units

By Our Special Correspondent

NEW DELHI, OCT. 27. The Left parties today urged the Government not to go ahead with the proposed disinvestment in 35 profit-making public sector undertakings and sought discussions on the issue as it is a "matter of vital concern to the people and country."

The Government plan amounted to "back-door privatisation" and served only as an "easy route" for resource mobilisation by the Finance Ministry, a joint statement by Harkishan Singh Surjeet (CPI-M), A.B. Bardhan (CPI), Abani Roy (RSP) and Debabrata Biswas (Forward Bloc) said.

The leaders questioned the rationale behind the setting up of an empowered group of Ministers to determine the price band for sale of PSU shares even before the constitution of the Board of Reconstruction of Public Enterprises for evolving a roadmap for revival of the PSUs.

A meeting of the Left parties took place today, ahead of their interaction with the Prime Minister, Manmohan Singh, on Iraq tomorrow.

`A contradiction'

The parties said the policy decision on disinvestment of PSUs runs counter to the common minimum programme (CMP) that provides for the PSUs to go individually to the market to raise capital, if necessary. Besides, the funds received from disinvestment would only meet the Government budgetary deficit and other requirements. Hence, the profit-making PSUs should either borrow from the debt market or float debentures, thus keeping intact the existing public equity structure.

The Left parties praised the Government's foreign policy initiatives aimed at improving ties with Pakistan, China and Russia. However, they wanted the Government to review the ties with Israel. The parties said the military and security cooperation with Tel Aviv initiated by the previous Government was not in the nation's interest.

While asking the Government to clarify whether it had made any commitment to joining the United States-led missile defence programme, they said the Government should also explain its response to the Proliferation Security Initiative that the U.S. wants India to join.

The Left parties reiterated their support for restoration of democracy in Myanmar and sought the release of the pro-democracy leader, Aung San Su Kyi.

Printer friendly page
Send this article to Friends by E-Mail

Front Page