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This is an archive article published on June 13, 2005

CPI slams UPA for scrapping PN 18

The UPA government’s equation with the supporting Left parties on the economic reforms is again being put to test as the Communist part...

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The UPA government’s equation with the supporting Left parties on the economic reforms is again being put to test as the Communist party of India (CPI) on Sunday criticised the government for scrapping the ‘‘Press-Note 18’’ an order that could have protected the interests of the Indian partners in joint ventures.

Speaking to the mediapersons, D. Raja, secretary, CPI, alleged that within ‘‘Hours of the UPA government scrapping the PN 18, a South Korean MNC had made use of it and kicked out its Indian partners without notice.’’

He said not only did the MNC sever its relation with the Indian company without any notice, it also sent orders that all the products that were duly purchased by retailers be destroyed.

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Raja said this was a ‘‘very serious issue’’ as it was the first direct fallout of the government’s policy on economic liberalisation.

Sending a reminder to the government, the CPI leader said, ‘‘Earlier too the Left had lodged their strong protest over scrapping of PN 18.’’ However, at that time, he said, Prime Minister Manmohan Singh had told them that the scrapping of the order would not have retrospective effect, an assurance that seems to fallen flat in the light of Korean company’s experience.

Raja said the Left parties would discuss the issue with the government in the UPA-Left coordination committee meeting. The meeting, he said, was being ‘‘arranged very soon.’’

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