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Our Bureau

New Delhi , May 15

THE Communist Party of India (Marxist) on Saturday reiterated its opposition to privatisation of profit-making public sector undertakings (PSUs), while ascribing the 330 points crash in the Sensex on Friday to the operations of a `bear cartel.'

Speaking to presspersons here, the CPI(M) Politburo Member, Mr Sitaram Yechury, said that it was naïve to believe that the markets had tanked simply on the basis of statements made by a few Left leaders. He noted that the Disinvestment Minister in the outgoing National Democratic Alliance (NDA) Government, Mr Arun Shourie, had referred to the presence of a bear cartel that had sought to pull down the market in February, when a public offer of shares in six PSUs, including ONGC and GAIL, was made.

"In the interest of the country, he (Mr Shourie) should name them so that the new Government can take appropriate action," Mr Yechury said.

The CPI(M) leader further clarified his party's position on privatisation by pointing out that the PSUs needed to be clubbed into three different categories: the big cash-rich `Navaratnas,' medium-sized profit-making companies and loss-making units.

While sell-off of the `Navaratnas' was totally ruled out, it was neither in the `national interest' to privatise the `B' segment of PSUs as well. The focus should rather be on making them further competitive and run truly on professional lines, "so that they make more profits for the country."

It is only in the loss-making PSUs or potentially loss-making units that one could consider induction of private joint venture partners to make them viable. "Only if all these efforts fail, the Government should talk to the management and the workers for their disposal," he added.

Mr Yechury also dismissed the idea that his party was against foreign direct investment (FDI) in the retail sector. According to him, it was not possible for the country to remain insulated in the present era of globalisation.

At the same time, FDI should fulfil three conditions: it should augment productive capacity instead of asset acquisition, should lead to technology upgradation and should generate employment.

If these three conditions are complied with, "foreign investment could be anywhere — retail or wholesale," he added.

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