The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:
On Disinvestment In Power Companies
The Polit Bureau of the CPI(M) opposes the decision of the government to disinvest shares in the Rural Electrification Corporation, Power Grid Corporation and the National Hydro Electrical Power Corporation.
These three power companies will be issuing an IPO which is expected to fetch them Rs. 2,400 crores. While these funds will go to the companies concerned, the government has decided to disinvest shares owned by it to the tune of about Rs. 1,500 crores. This is uncalled for.
The government should stop the practice of riding piggy back on IPOs issued by the public sector companies. The CPI(M) calls upon the government not to proceed with the disinvestment of shares alongwith the IPOs.