Financial Daily from THE HINDU group of publications
Tuesday, Jan 03, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 03, 2006 |
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Disinvestment Industry & Economy - PSU Government - Politics Left opposes divestment in profitable PSUs Our Bureau
The CPI (M) General Secretary, Mr Prakash Karat, and the Polit Bureau member, Mr Sitaram Yechuri, at a meeting of the Left parties on disinvestment in the Capital on Monday. — Ramesh Sharma
New Delhi , Jan. 2 THE Left parties on Monday reiterated their position that disinvestment of profitable public sector units was not the proper way of raising resources, thereby putting a question mark on the Government's proposed move to sell shares in some profitable non-Navratna PSUs. Similarly, the opposition to the pension fund Bill remained unaltered and on the issue of modernisation of Delhi and Mumbai airports, the Left parties said they would again present their views to the Government. A meeting of the Left parties, attended by the CPI(M), the CPI, the Forward Bloc and the Revolutionary Socialist Party (RSP), was convened here today after the Government informed them of its intention of offloading stake in some profitable non-Navratna public sector units. The Left parties had heard out the Government, and had said they would convey their decision after today's meeting. In mid-2005, the Government had abandoned the move to divest stake in the profitable Navratna Bharat Heavy Electricals Ltd after the Left parties strongly opposed selling stake in profitable PSUs on grounds that the Common Minimum Programme did not permit it. Having opposed the disinvestment move, the Left parties, which are extending crucial outside support to the Manmohan Singh Government, discussed alternative proposals for resource mobilisation that can be undertaken by the UPA Government. "The proposals, when finalised, will be submitted to the UPA-Left co-ordination committee. At the next meeting, we shall also put forth our views on the issue of modernisation and restructuring of Delhi and Mumbai airports," the General Secretary, CPI (M), Mr Prakash Karat, said after the meeting. "We are opposed to the move," the General Secretary, CPI, Mr A.B. Bardhan, said when asked on the Left view on disinvestments. On December 29 last year, the Finance Minister, Mr P. Chidambaram, had said that the Government was in "talks" with the Left parties on disinvestments in some non-Navratna public sector undertakings. Asked whether the disinvestments would be done during the current fiscal, the Finance Minister said that timing of the disinvestment did not matter as the proceeds would go to the National Investment Fund (NIF) and could not be accounted for budgetary purposes. The Left also reiterated its opposition to the move to privatise pension funds and said that they were against the Pension Fund Regulatory and Development Authority (PFRDA) Bill. Also, at the next meeting of the Left parties, a paper would be presented putting forward the position that should be taken on issues concerning India and other developing countries in forthcoming negotiations at the WTO meeting, a statement issued after the meeting said. Asked when the UPA-Left co-ordination committee would meet again, Mr Karat merely said that it would be before the end of the month. As for the sale of residual Government stake in VSNL, Balco, CMC, IPCL and IBP, the shareholders agreement in each case provides for a call option by the strategic partner to acquire the residual stake.
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