The Hindu Business Line : `Is Govt losing faith in leading role of PSUs?' — Mr Gurudas Dasgupta, CPI Member of Parliament

The United Progressive Alliance (UPA) coalition Government, led by the Congress(I), sets great store by the National Common Minimum Programme (NCMP). The Left parties lending support to the UPA Government too brook no deviation from the agreed framework of the NCMP. It is small wonder, then, that they decided to stay away from the UPA Coordination Committee when they could not persuade the Government to refrain from courting what they perceive as an anti-labour disinvestment of profit-making public sector undertakings such as BHEL.

Some of the original reform architects seem to be wary of functioning freely in the policy domain, lest any of their liberalisation moves should invite the wrath of the allies, particularly the Left parties, as being a departure from the agreed framework. The Left parties have become the Government's most outspoken critics, especially when its policy ramifications have a bearing on the people, in general, and the working class, in particular.

And one of the most vocal on these matters is the Communist Party of India MP, Mr Gurudas Dasgupta. He is no novice to Parliament, having been a three-term member of the Upper House since 1985, before he was elected to the Lok Sabha in 2004 from the Panskura constituency of West Bengal.

Less than one-and-a-half years into his five-year term, Mr Dasgupta has raised as many as six calling attention motions on matters of public interest. Asked how the Government reacts to his demands, the Member of the CPI's National Secretariat wryly remarks that the "Government is evasive and the response marginal". His assessment is "the performance of the UPA government has not been satisfactory".

Now that the Left parties keep the Government on its toes by raising issues of importance, will they unite on a common platform? Mr Dasgupta is quick to say that "Unification of the Communist movement is a long-term perspective". Asked how soon that would be, he quipped: "Ask your astrologer!" Mr Dasgupta spoke to Business Line at his Canning Lane residence in New Delhi on the NCMP, economic reforms and disinvestment.

Excerpts from the interview:

On reconciling the NCMP with economic reforms

The way economic reform is sought to be pursued by the Government, liberalisation and privatisation and the different steps of reforms, in terms of the impact on the people, appear to be one-sided in the sense that reform should have an angle to improve the human fundamentals.

It seems also intended to give the industrialists and the multinational companies a free hand to employ people on their own terms, borrow money from the nationalised banks and do business in a way which gives them maximum profit in order to clear the debts. Reform is intended to reduce the cost of labour not only in terms of reducing the number but also reducing the payment for the work they are discharging. In the place of permanent labour, it seeks to employ contract labour, labour tied up with the contract that the business-house receives from outside. That is why questions are being raised that India's labour laws are much too rigid and there should be more flexibility in the labour market. Thus, in the name of flexibility, the condition of employment is going to be diluted and the form of employment tied to the volume of contract.

Maybe the foreign companies and domestic corporates in quest of profits see a need to reduce cost. To reduce cost, the entire burden is being shifted on labour, while the managerial cost is not being reduced and the corporate spending spree is not curbed.

There is super-exploitation of labour which means pay them as less as possible and put on their head as much as possible to extract as much as possible in exchange for as less as possible. Reform means liberalisation.

Withdrawal of controls may be necessary but the absence of any monitoring system and safeguards against aberration of liberalisation are not being seriously considered. The way reforms are being pursued it seeks to utilise the social resources for private gain. People have not benefited, as there is concentration of wealth and accentuation of income disparity. The need for transparent corporate governance is being dispensed with. Regulatory agencies are barely functioning. When economic fundamentals are not bright how can the stock market boom? It is gambling and it is being done deliberately to reap revenues because the government is getting transaction tax, besides giving the false impression to attract more foreign capital.

We sincerely differ with the Finance Minister and seriously believe that it is wrong for him to eulogise the stock market the way he is doing. Inflow of funds into the stock market is no investment as it is a speculative short-run bull race to make money.

On disinvestment of small stakes in profit-making PSUs

If it is done for economic reasons, that is, raise money to finance social sector, it will not give the required amount; it will be peanuts. Disinvestment of 10 per cent stake in BHEL will fetch Rs 2000 crore when social sector investment requires Rs 50,000-1,00,000 crore.

They are doing disinvestment for political reasons to tell the world that they are diluting the PSUs in conformity with the reform programme, so come and invest.

Maybe the Government or the Finance Ministry is losing faith in the leading role the PSUs can play. It is creeping privatisation, at least in the joint sector. This is wrong. It will weaken the navaratnas and undermine their role and affect the economy.

If you need more money for the social sector, take the alternative course — increase the tax-GDP ratio, impose tax on those who have the capacity to pay and try to mobilise a fragment of the black money, reduce wasteful expenditure and take a new look at resource management, keeping an eye on the supreme need for mobilising resources to tackle the problems of unemployment and poverty.

The current lop-sided economic strategy is surely not going to take the economy in the direction people desire. It is not the Left's alternative. It is the people's alternative.

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