The
Left Parties met today and issued
the following statement:
The
UPA government has announced its intention to disinvest shares in a large number
of profitable public sector units including the navaratnas
and miniratnas. The plans for the large-scale disinvestment of PSU shares has
been drawn up by the disinvestment department in the Ministry of Finance.
Daily media reports are appearing of the proposals to offload shares in
the market of such companies as BHEL, Power Grid Corporation, Power Finance
Corporation amongst 35 public sector units.
The Cabinet has set an empowered group of ministers which includes the
Finance Minister and the Deputy Chairman of the Planning Commission to fix the
price band for the sale of the shares.
It is claimed that disinvestment
upto 49 per cent of the shares in profitable public sector units can be
undertaken as retaining 51 per cent government share holding will ensure that
these units are not privatised.
The
Left Parties express serious concern at this policy decision which has major
repercussions for the very nature of the public sector.
A number of issues arise regarding the decision to step up disinvestment.
Firstly, this is a decision being taken by the government and not the public
sector units themselves. The CMP
has provided for the PSUs individually going to the market to raise capital if
they so require it. The funds
raised from the disinvestment would be going towards meeting the budgetary
deficit and requirements of the government. It can also be seen as a way to
privatisation through the back door. Profit-making PSUs can be given the freedom
to mobilise resources in the debt market or through debentures in the capital
market without tinkering with public equity.
Raising
of resources from the capital market should be decided by the public sector unit
concerned, if the concept functional autonomy of the PSU, as stated in the CMP,
is to be respected. The
current move will not strengthen the public sector but only facilitate an easy
route for resource
mobilisation by the Finance Ministry.
The
Board for Reconstruction of Public Enterprises has not yet been formed
while the empowered group of ministers is already going ahead with fixing
the price for the sale of shares in profit-making PSUs.
The
Left Parties would like the UPA government to stop this disinvestment process
and discuss this matter seriously as it is of vital concern to the people and
the country.
The
Left Parties have already expressed satisfaction at the outcome of the recent
talks which form part of the India-Pakistan dialogue.
Both the Foreign
Ministers’ meeting in New Delhi and the meeting between Prime Minister
Manmohan Singh and President Musharaff in New York have created a positive
atmosphere for the dialogue to continue. The
Left Parties are also happy that the Foreign Ministers of India, China and
Russia met at Almaty, Kazakhstan to discuss further strengthening of mutual
relations and cooperation.
The
Left Parties wish to draw the attention of the UPA government to the following:
1.
Indo-US relations
In
the ongoing talks with the United States, missile defence
cooperation is being discussed. They
figured in the talks regarding the “Next steps towards a strategic
partnership” during the visit of Ms. Christina Rocca, US Assistant Secretary
of the State. According to the US
Ambassador in India, both countries have gone beyond talking about missile
ballistic defences and the issue to
“figure out” which systems are to be put in place.
The Bush administration’s national missile defence system is a highly
controversial project and it is seen to be a major step towards
escalating the arms race with a view to reinforce America’s global hegemony.
The Vajpayee government had agreed to discuss missile defence
cooperation, a project in which India should not be involved.
The Left Parties would like the UPA government to clarify whether any
commitments have been made towards joining the US-sponsored missile defence
programme. Similarly, the government should explain what is its response to the
Proliferation Security Initiative which the US wants India to join.
2.
Relations with Israel
The
Israeli government is currently engaged in a large-scale military offensive in
the Gaza strip. These military operations which began on September 28 have
already resulted in the deaths of more than 100 Palestinians.
This includes a shockingly large number of children.
The UN Security Council had adopted a resolution calling on Israel to
stop its military operations which was vetoed by the United States.
The UPA government is committed to the policy of extending support to the
Palestinian cause. The deep
military and security cooperation established with Israel by the BJP-led
government is not in the national
interests, nor does it conform to our longstanding opposition to Israel’s
occupation of the Arab territories. It
is necessary for the UPA government to review the nature of the strategic ties
with Israel as an integral part of ensuring that India has an independent
foreign policy.
3.
On Democracy in Myanmar
The Left parties reiterated their support for the restoration of democracy in Myanmar (Burma). The Myanmar government should release Ms. Aung San Su Kyi from house arrest to facilitate the dialogue for the democratic process. In the context of the visit of the Myanmar Head of State to India, the UPA government should state this concern to the Myanmar authorities.
(Harkishan Singh Surjeet)
(A.B. Bardhan)
Communist
Party of India (Marxist)
Communist Party of India
(Abani Roy)
(Debabrata Biswas)
RSP
Forward Bloc