Oppose the Entry of Private Companies in Nuclear Production and 100 percent FDI in Insurance

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

Oppose the Entry of Private Companies in Nuclear Production and 100 percent FDI in Insurance

The Polit Bureau of the Communist Party of India (Marxist) opposes the Union Cabinet’s decision to open nuclear power generation to allow the entry of private and foreign companies. It also disapproves of the Cabinet’s decision to allow 100 per cent foreign direct investment (FDI) in the insurance sector.

The Union Cabinet has decided to amend the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA), 2010 in the ongoing Parliament session. The proposed amendments are intended to allow the entry of private companies, including foreign technology and equipment suppliers.

Opening up a strategic and crucial sector like nuclear energy to private companies will be disastrous. The amendments give private nuclear companies a free hand in deciding the tariffs for electricity produced by them.

The amendment to the CLNDA is dangerous as it dilutes the compensation to be given to people affected by a nuclear accident. The government has succumbed to US pressure and is amending the Act to absolve the manufacturer of the liability for accidents and other untoward incidents. This amounts to a double bonanza – they will neither be held liable for accidents nor be subject to regulatory oversight in determining tariffs. This is yet another example of the pro-corporate policies of the BJP-led NDA government.

FDI in Insurance: Allowing 100 per cent FDI in the insurance sector will destabilise the domestic insurance industry. It will jeopardise policyholders’ privacy and financial security. The commercial priorities of foreign investors will override public welfare objectives. This will undermine financial stability and social security. This move also opens the door to predatory takeovers, resulting in a loss of control over vital national resources.

The CPI(M) calls upon all the democratic sections of the society to oppose these amendments in defence of the country’s interests.