M A I N   N E W S

UPA, Left discord on PSU divestment
Anita Katyal
Tribune News Service

New Delhi, June 19
The ruling United Progressive Alliance (UPA) and the Left parties today failed to find a meeting ground on the contentious issue of disinvestment in public sector undertakings (PSUs), especially the Bharat Heavy Electricals Limited (BHEL).

The Left parties reiterated their opposition to the government’s decision to disinvest 10 per cent stake in BHEL at the special UPA-Left coordination meeting held here today.

The government, on its part, maintained that the 'public-sector character' of the navratnas (profit-making PSUs) would not be changed but gave no assurance on going back on its decision on offloading its equity in BHEL.

The meeting evaded all discussion on the fuel price hike issue but the government has already told Left leaders that an increase in the price of petrol and diesel can no longer be put off.

Consequently, the government can well go in for a moderate hike in fuel prices when the Cabinet Committee of Economic Affairs (CCEA) meets here tomorrow.

As regards the issue of disinvestment, CPM leader Sitaram Yechury admitted after the meeting that “differences are still there".

He said the Left leaders told the Prime Minister, Dr Manmohan Singh, and his Cabinet colleagues that there was no dilution in their stand on the issue of disinvestment of profit-making PSUs and that they would soon decide on their protest plans.

Mr Yechury, along with other Left leaders D.Raja and Abani Roy, also told the government that they would be meeting next week to finalise their protest plans.

Talking to reporters after the meeting, Finance Minister P.Chidambaram said the government made it clear that the public-sector character of the “navratna” PSUs would not be changed.

“The government also said the future capital requirements of the navratnas will be met,” he added.

It is learnt that both Dr Manmohan Singh and Mr Chidambaram explained that the government had resorted to minor disinvestment of PSUs in order to raise funds for its social sector programmes and revival of sick industries.

“Where do we raise funds for all these programmes,” they are learnt to have asked.

The Left leaders, however, quoted the Common Minimum Programme, saying it had laid down that disinvestment of profit-making PSUs would not be pursued.

The government and the Left are, however, interpreting the CMP language differently.

The UPA maintains the CMP had ruled out privatisation but not disinvestment, which allows the government to offload its equity upto 49 per cent without loosing control of the PSU.

For the Left parties, however, privatisation and disinvestment are synonymous.

“The government says it will not privatise profit-making PSUs. But for us, privatisation and disinvestment are coterminous,” Mr Yechury explained, saying there was no agreement between the two sides because of this.

The Left leaders also referred to their pending demand for dropping of POTA charges against the Godhra accused following the recommendations of the review committee.

The Centre assured the Left that these recommendations would be implemented, Mr Yechury said, adding that it would move court to drop the anti-terror law charges as recommended by the committee report. The Prime Minister assured the Left leaders that Commerce Minister Kamal Nath would meet them and explain India’s position on WTO after they sought a discussion on this issue.