Press Statement

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

The Polit Bureau of the Communist Party of India (Marxist) calls upon the Government of India to immediately withdraw from the conciliation/arbitration proceedings initiated by the Dabhol Power Company pursuant to the counterguarantee given by the Vajpayee government.

The Supreme Court in its August 6th order in Special Leave Petition No. 12200 of 2001 filed by DPC has unequivocally stated that (until such time as the High Court finally hears and decides the DPC writ petition) "the arbitration proceedings which have been commenced by the appellant shall not be proceeded with." The subject matter of the conciliation/arbitration proceedings is disputed payments which is also the subject matter of the DPC petition in the Mumbai High Court, and therefore subjudice.

In these circumstances it was both unnecessary as well as improper for the Government of India to participate in the conciliation/arbitration proceedings commenced by the DPC. The Vajpayee government’s participation in these proceedings once again reflects blatant favouring of US-based MNCs at the expense of Indian economy and people’s livelihood. The government should not become party to nor fall prey to the pressure tactics employed by the DPC, and should immediately withdraw from the said proceedings.