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Govt refuses to relent on FDI hike in telecom sector New Delhi, October 12 Sources said the government had assured the Left leaders about the measures being taken to restore peace in the North-East and to curb extremist violence in the region. On Jammu and Kashmir, the government informed the Left leaders about the talks with the Pakistan President Pervez Musharraf and the measures being taken to strengthen the ties between the two countries and set a pace for the peace process. They also indicated that the Centre would soon decide on the offer of ceasefire made by the National Democratic Front of Bodoland in Assam. Union Home Minster Shivraj Patil, who briefed the Left leaders, gave a detailed account of the measures being taken by the administration to restore confidence among the people. In a note to the Left leaders, Union Finance Minister P. Chidambaram clearly stated that a massive Rs 1,60,000 crore investment was required in the telecom sector and it would be possible only through foreign direct investment. “The most recent growth in the number of phone connections has been exceptional, but to sustain this growth and to achieve a network coverage of 70 per cent as against the current 20 per cent, we require investments on an unprecedented scale, which is possible only with FDI,” Mr Chidambaram said. The government reply to the note submitted by the Left parties clearly indicated the stance of both and the Left leaders said they would carefully study the response and react. Although in their initial reaction, the Left leaders had rejected the argument of the government and had voiced “security” concerns if the telecom sector was completely opened up. The Left leaders today presented a note on the review of the Electricity Act expressing their reservations on some of the provisions. The Left is opposed to the Electricity legislation, saying it encouraged private sector in the distribution and transmission of power, which they fear would lead to the neglect of the rural areas under the garb of reforming the power sector. A statement issued after the meeting of the UPA-Left coordination committee, chaired by Sonia Gandhi, the issue concerning the shifting of industrial units in Delhi was raised. The government informed the committee that it was seized of the matter. The government also informed the committee about the measures that will be taken in the next few weeks on the legislative measures that are proposed to be introduced in the next session of Parliament. The government assured the Left leaders that it had been taking various measures to implement a number of commitments contained in the National Common Minimum Programme. Besides Mr Chidambaram and Mr Yechury, the meeting was attended by the Prime Minister, UPA Chairperson Sonia Gandhi and her Political Secretary Ahmed Patel, Defence Minister Pranab Mukherjee,
CPI (M) General Secretary Harkishen Singh Surjeet, CPI General Secretary A.B. Bardhan and his party colleague D. Raja, RSP Secretary Abani Roy and Forward Bloc General Secretary Debabrata Biswas. |
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