CPI (M) opposes disinvestment in NTPC, other PSUs

The Communist Party of India (Marxist) today reiterated its strong opposition to the Government's decision to 10 per cent of its shareholding in all profitable public sector undertakings (PSUs).

In a statement issued by its Central Committee after a three-day meeting in Kolkata, the party noted that shares in National Hydro Power Corporation, Oil India Limited and NTPC Limited had already been disinvested and that the Government was planning to sell shares in as many as 60 PSUs in the next two years.

"The deceptive concept of 'people’s ownership' is being used to mislead public opinion and conceal the true nature of disinvestment," it said.

"The government is forgoing future income from dividends. Worse, it is transferring State-owned assets to private hands. The NTPC shares are being sold cheaply, showing how public assets are being plundered," it said.

"Rather than mobilizing more taxes from the private corporate sector by doing away with tax exemptions, the Congress-led government is opting for the irrational course of disinvestment which is only meant to benefit the big financial players in the stock market," the statement said.

It said the Central Committee would mobilise people against disinvestment and extend all support to the struggle of the trade unions and the public sector employees against this step.

The CPI (M) also strongly opposed the recent recommendation of the Kirit Parikh Committee for market-determined prices of petrol and diesel and for an increase of Rs 100 per cylinder of cooking gas.

It said such a step would have a cascading impact on rising prices of essential commodities which are already at an all-time high and would lead to a further burden on the people.

The party said it was the wrong policies of the Government which had led to the situation of high food inflation and that the redressals suggested were also misconceived.

"A major reason for price rise is the severe weakening of the public distribution system by a drastic cut in allocation for so-called above poverty line (APL). Instead of at least partial restoration of the cuts, given the buffer stocks available, the government in the name of additional allocation is giving the states 10 kgs of foodgrains per family at double the price," the statement said, demanding the restoration of the allocations at least at the APL prices.

The CPI (M) said the sugar shortage and subsequent high prices were a direct result of the refusal of the Government to maintain a buffer stock and instead incentivising exports.

The statement demanded that the Government bring a food security legislation which ensures a universal right to food, with a 35 kg family allocation of foodgrains at Rs 2 a kilo. It also demands that more essential commodities at subsidised prices should be included in the PDS through central government subsidies. The party called upon its various units to campaign against price rise.

NNN