Left steps back on PSU divestment

The Left parties have put one more roadblock in the way of the government8217;s disinvestment plans by rejecting the proposal on disinvestm...

The Left parties have put one more roadblock in the way of the government8217;s disinvestment plans by rejecting the proposal on disinvestment of non-Navratna profit-making PSUs.

The decision, taken at a meeting of four Left parties on Monday, puts out of reckoning a plan put forth by Finance Minister P. Chidambaram for disinvestment of shares in four profit-making non-Navratna PSUs during meetings last week with CPIM8217;s Prakash Karat and CPI8217;s A.B. Bardhan.

The Left8212;which is gearing up for elections in West Bengal and Kerala8212;had agreed, in principle, at the UPA-Left coordination meeting in November to disinvestment of non-Navratna profit-making PSUs. They wanted to be told which PSUs were to be divested and they would discuss the issue on a case-by-case basis.

This was also the line of thinking at the meeting with Chidambaram, though the Minister was told the matter would have to be discussed by all Left parties. However, on Monday, they decided to oppose such sales as it8217;s 8216;8216;not the proper way to raise resources.8217;8217;

Instead, an alternative plan for resource mobilisation that suggests increasing the tax-GDP ratio and taxing 8216;conspicuous consumption8217; will be presented by the Left parties at the next UPA-Left coordination meeting.

The Left wants the tax-GDP ratio to be raised to 11 per cent. It also wants tracking and taxation of high-value purchases8212;from watches to luxury cars. Other suggestions are to include surcharge on diesel for family cars but not transporters and farmers, surcharge on hotels, corporate spending and malls.

nbsp;	Left Wishlist

		nbsp;	8226; Don8217;t raise funds by selling PSU shares 8226; Instead, tax big spending and raise tax-GDP ratio 8226; Don8217;t privatise pension funds. PFRDA Bill can8217;t go through 8226; Call for fresh bids for Delhi, Mumbai airports privatisation 8226; Hold demonstrations against US policies during George Bush8217;s India visit	nbsp;

The differences with the UPA on non-Navratna PSU disinvestment may not be as sharp as in the case of BHEL. 8216;8216;We will tell the government that selling PSU shares is not the way to raise resources. We will present them our plan and discuss their plan,8217;8217; said Karat. However, Bardhan said, 8216;8216;the chapter is closed. We are opposing the sale of PSU shares.8217;8217;

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Chidambaram and the Left leaders discussed 10-15 per cent sale of Neyveli Lignite, HUDCO, National Mineral Development Corporation and Power Finance Corporation.

The Left has also opposed privatisation of pension funds and the PFRDA Bill. On airport privatisation, the Left parties want the current bidding process to be scrapped.

They will also hold demonstrations against US policies during US President George Bush8217;s India visit in February-March. 8216;8216;We will organise a widespread campaign against US policies during Bush8217;s visit. We will hold demonstrations wherever he goes,8217;8217; said Karat.