The Hindu : National : CPI(M) opposes proposed disinvestment in private banks

Online edition of India's National Newspaper
Thursday, Nov 04, 2004

National

National

CPI(M) opposes proposed disinvestment in private banks

MANGALORE, NOV.3. The Communist Party of India (Marxist) today said it strongly opposed the Central Government's proposal to sell 10 per cent of the share of private sector banks to foreign banks every year.

At a press conference here, the CPI(M) Polit Bureau member, Prakash Karat, said disinvestment in private sector banks would not help the Indian banks in their expansion and upgradation, but only aid the Government to meet its budgetary deficits. When, as per the RBI guidelines, only five per cent of the shares of the private banks could be sold, how could the Union Finance Minister, P. Chidambaram, take such a decision, he asked.

Pointing out that already foreign banks had opened branches in India, he said there was no need for selling the shares to them.

Mr. Karat said his party did not favour the Congress-led UPA Government's proposal to merge public sector banks (PSBs) too. ``We do not want to dismantle the well-functioning PSBs with wide network of branches. It is okay if it is a genuine case.''

He accused the Union Home Minister, Shivraj Patil, of failing to give a free hand to the CBI to proceed with the 15 cases relating to allotment of petrol pumps and gas agencies despite a Supreme Court directive. ``We do not distinguish between the Congress and the BJP in this regard. While the previous BJP-led NDA regime had allotted petrol pumps and gas agencies to RSS and BJP men during the previous NDA regime, the Congress leader, Captain Satish Sharma, had allotted them to a few of his partymen when he was in power,'' he alleged.

On frequent hike in prices of petroleum products, Mr. Karat said his party had demanded the Centre to reduce the duty structure.

The party also strongly opposed foreign direct investment in print media, he added.

UNI

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

National