Financial Daily from THE HINDU group of publications
Thursday, Jul 14, 2005

Port Info

Group Sites

Home Page - PSU
Industry & Economy - Disinvestment
Government - Politics

Consult us on all disinvestment decisions, says Left

Sarbajeet K. Sen

New Delhi , July 13

THE disinvestment tussle between the UPA and the Left parties could move beyond BHEL.

After putting the UPA into an uncomfortable position on the issue of the proposed divestment of Government stake in BHEL, the Left now plans to pin the Government down on the entire issue of public sector disinvestment.

Seeking major changes in disinvestment procedures, the Left now wants to be consulted before the Government makes any formal announcements on disinvestment in any public sector undertaking. A demand along these lines would widen the ongoing tussle beyond divestment in profit-making PSUs or Navratna units.

"Before making any announcement of disinvestment in any public sector undertaking, whether profit-making or not, the Government should consult us (the Left parties)," Revolutionary Socialist Party (RSP) leader Mr Abani Roy said.

Speaking to Business Line, Mr Roy said such prior approval would eliminate the possibility of further embarrassment to the ruling Congress-led coalition. "The BHEL divestment issue is being fought out in full public view. If the Government discusses its disinvestment plans with us before making any public announcement such embarrassment would not be repeated in future," Mr Roy, who was among the Left leaders negotiating with the UPA on the BHEL issue , said.

Mr Roy also said that the Left could, in fact, press the UPA for providing a more detailed picture of its disinvestment plans for the full tenure of the present Government. "This year it is BHEL, but what about 2006-07 or 2007-08? We would like to know the long-term plans of the Government," he said.

The Government's proposed move to disinvest 10 per cent of its holding in BHEL has caused severe consternation among Left parties, who have pointed out that this goes against CMP (Common Minimum Programme) assurances that there would be no disinvestments in profit-making undertakings.

In fact, aggrieved at the Government's stance, the Left parties have withdrawn from coordination sittings with the UPA. The intense standoff has also resulted in two rounds of discussions between the Left leaders and the UPA Chairperson, Ms Sonia Gandhi.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Realty investors turn to Tier II cities for lucrative returns

Infineon `chips' in to halve handset cost
`Break monsoon' expected to get established by Sunday
PSU insurers, hospitals agree on `package deal pricing' — Move to check overcharging of services
Gas pipeline project: India, Pak to appoint financial consultants
MFs' asset base shrinks in June
Consult us on all disinvestment decisions, says Left
ONGC to be worst hit under subsidy sharing
ONGC forays into power, to set up project in Tripura

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line