Press Statement

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

The Vajpayee government has once again shown its solicitous concern for foreign capital while disregarding the country’s vital interests. The decision of the Union Cabinet to do away with the ceiling of Rs. 1500 crore for automatic approval of 100 per cent foreign investment in the power sector in generation, transmission and distribution does not take into account the experience of having wholly owned foreign enterprises in the power sector which has hiked up the cost of power enormously.

The decision to allow 100 per cent foreign investment in petroleum refining will further downgrade the public sector in the oil industry. The decision to do away with the requirement that foreign companies should compensate the dividend repatriated abroad in equivalent export earnings in 22 consumer goods industries is uncalled for. It is another step which will deprive the country of foreign exchange earnings.

The Vajpayee government seems determined to stifle domestic enterprises and handover all sections of the economy to foreign capital.

The Polit Bureau of the CPI(M) strongly opposes the latest measures announced by the cabinet and calls upon all democratic sections to protest against them.