Press Statement

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

Rescind Decision on Privatisation of Defence Production

The decision of the Vajpayee government to open up defence production to the private sector is fraught with serious consequences. According to the cabinet decision, Indian companies with upto 26 per cent foreign equity can now take up production of ammunition and other weaponry which has so far been in the governmental sector.

The Polit Bureau of the CPI(M) strongly opposes this decision. The participation of foreign capital in this sector will compromise national secutiry. The Vajpayee government has also announced a series of measures to further privatise the economy and allow 100 per cent foreign investment in pharmaceuticals, airports etc. Such indiscriminate opening up to foreign capital has not yielded any beneficial results as seen in the glaring case of the Dabhol project of Enron.

The Polit Bureau demands the rescinding of these decisions, especially the opening up of the defence production sector, which should be taken up for a thorough discussion in parliament.