New Delhi, July 1
The UPA Chairperson Sonia Gandhi’s meeting with the Left leaders over the BHEL disinvestment today broke the ice between the two parties, but failed break the impasse on the issue with the Communists continuing to hold to their stand to stay away from the coordination committee.

“The meeting was called by UPA Chairperson Sonia Gandhi. She suggested that a way should be found to settle the matter as early as possible. The Left leaders responded with the hope that the discussions will help resolve the issue,” CPM General Secretary Prakash Karat said after an hour-long meeting.

Congress spokesperson Ambika Soni said: “This was the first meeting on the issue and we are confident that the issue would be resolved through discussions.”

“That talks were held is itself a positive signal. It clearly indicates that both sides wanted to find a way out. The talks were held in a cordial and positive atmosphere,” she added.

CPI National Secretary D. Raja, to a question whether the Left parties would withdraw their boycott of coordination committee meetings, said “our decision will depend on what stand they take on the BHEL issue”.

Ms Soni said no formula was proposed at the meeting Ms Gandhi had with the Left leaders. They indicated that the meeting was exploratory in nature.

Sources said the next round of talks with the Left were likely on Monday. Prime Minister Manmohan Singh as also Sonia Gandhi will proceed to Tamil Nadu tomorrow for the foundation stone laying ceremony of the Sethusamudram project.

Left leader A. B. Bardhan (CPI), Debrata Biswar (AIFB) and Abani Roy (RSP), who are away from the Capital, will reach Delhi by then.

Ms Karat said the UPA government decision to disinvest 10 per cent stake in BHEL was the first serious violation of the National Common Minimum Programme, which formed the basis of the Left parties’ outside support to the coalition.

The CMP restricts disinvestment in the Navratnas, the nine profit-making public sector companies. The CMP clearly stated that the Navratna companies should be retained in the public sector while raising resources from the market.

Returning from her sojourn in Himachal Pradesh last evening, Ms Gandhi called CPM General Secretary and CPI National Secretary D. Raja to her residence this morning and discussed their decision to suspend their participation in the UPA-Left Coordination Committee protesting against the move to divest 10 per cent equity in BHEL.

A core group meeting of the Congress Party and Prime Minister Manmohan Singh which was also attended by Finance Minister P. Chidambaram last evening decided that Sonia Gandhi would talk to the Left leaders to resolve the deadlock.

In the meeting, the sources said, the two sides explained their stands on the issue. Left leaders, which hold the CMP text as “Bible”, pointed out that the UPA coalition had violated it in letter and spirit.

However, the UPA Chairperson explained that the disinvestment of 10 per cent stake in BHEL would not change the public sector character of the Navratna, the sources said.

The money, so generated would be used for funding the social sector projects, key sector close to the hearts of the Left parties.

When Mr Karat was asked how the government could rollback the BHEL disinvestment as the process had been initiated and any rollback could send a wrong message to the international investors’ community, he said, “the government can always state that it is sticking to the CMP”.

“If BHEL wants to generate resources it can tap it from the markets, but that is not required as the company has Rs 5,000 crore as profits,” he added.

The sources said the Left leaders stated that this was a first step and would pave the way for the eventual privatisation of the PSUs.

The Navratnas had been specifically mentioned in the CMP, to enable them maintain their public sector character, the sources said.

On Sunday at a meeting of the four Left parties, their leaders decided not to attend the UPA-Left Coordination Committee meeting, accusing the government of the “first serious violation” of the CMP on the issue of BHEL and the Navaratna companies.

They wrote letters to Ms Gandhi and Prime Minister Manmohan Singh, who both talked to Mr Karat.