The Hindu Business Line : CPI (M) opposes easing of FDI norms

New Delhi, Jan. 31 The Communist Party of India (Marxist) has opposed the recent decision by the Government to liberalise foreign direct investment norms in a couple of sectors.

“The decision to raise the foreign equity cap from 26 per cent to 49 per cent in the petroleum refining public sector undertakings would pave the way for further disinvestment in them. Also, the condition for compulsory disinvestment of 26 per cent to an Indian partner in case of petroleum trading and marketing companies has also been done away with.

The CPI (M) strongly opposes both these moves as they seek to enhance the presence of foreign companies in the strategic petroleum and natural gas sectors,” the party said in a release here on Thursday.

The release added that that the Government should reconsider this decision.

The CPI (M) further said that the decision to allow FDI and FII up to 49 per cent in commodity exchanges is also unwarranted.

“The Government had earlier issued an ordinance to amend the Forward Contracts Regulation Act enabling the participation of foreign players in the commodity futures market, defying the recommendation of a Parliamentary Standing Committee, which categorically opposed such a provision,” the CPI (M) said in the release.

Price concerns

The party also said that the Government seems to be impervious to the opinion across the political spectrum that liberalisation of commodity exchanges is not in the interest of maintaining price stability in the economy.

According to the party’s Central Committee, allowing 100 per cent FDI in titanium mining is another retrograde move. “Rather than strengthening the public sector in the extraction of exhaustible minerals, the Government seems to be keen on privatisation and opening up of the mining further sector. Further liberalisation of the FDI norms in cargo as well as ground handling operations also need to be reviewed from the security aspect,” the release said.

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