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Yechury criticises NALCO divestment

Staff Correspondent

"Neither common sense nor good economics"


  • NALCO, NLC are profit-making units
  • Widen tax net to generate resources
  • Stop forward trading in essential commodities

    BHOPAL: Communist Party of India (Marxist) Polit Bureau member Sitaram Yechury said here on Saturday that his party would ensure that the United Progressive Alliance (UPA) Government did not deviate from the Common Minimum Programme (CMP) that forms the basis of the support to the Government.

    Mr. Yechury was here to participate in a seminar against communalism, organised by the CPI (M) and the Communist Party of India.

    At a press conference at the CPI (M)'s State unit office, he said, "We are going to support each policy of the UPA Government only after analysing it comprehensively and ensuring that it falls within the CMP's ambit."

    ``Against the CMP''

    The Union Cabinet's nod for divestment of 10 per cent stake in NALCO and the Neyveli Lignite Corporation (NLC) was against the CMP, as these were profit-making units. The CPI (M) would oppose the decision, though the Centre had assured that the Government's stake in these units would not go below 76 per cent.

    Mr. Yechury criticised the Government for its claim that the sale proceeds would go to the National Investment Fund.

    "Selling property to meet expenses is neither common sense nor good economics. If the Government is really concerned about generating resources, it should take steps to recover the huge tax arrears from corporate houses."

    Also, many areas had not been covered under the tax net. For example, the share market had been left out but tax was deducted at source in the case of the salaried class.

    Service tax was levied at 12.24 per cent on all postal services, including money orders, and postal savings. This imposed a massive burden on the poor

    Mr. Yechury said the Government would have to widen the tax net, while ensuring that the poor got relief, and the maximum burden fell on the rich and those who had the capacity to pay tax.

    Rising prices

    The CPI (M) was concerned over rising prices, especially those of food items.

    The Centre's bid to tide over the crisis through imports was not "a total solution" to the problem, which had become complicated due to hoarding and forward trading.

    It was necessary for the Government to put an end to forward trading in essential commodities.

    The Left would mount the pressure on the Government to ensure the passage of the Tribal Bill.

    The National Rural Employment Guarantee Act was passed due to the efforts of his party, Mr. Yechury emphasised.

    Earlier, speaking at the seminar, he said communalism was being fanned in Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh and Orissa on the pretext of religious conversion.

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