Opinion View from the LEFT
As expected,the Left parties opposed the governments decision to divest up to 10 per cent of its stake in profit-making PSUs.
Pricing is everything
As expected,the Left parties opposed the governments decision to divest up to 10 per cent of its stake in profit-making PSUs. But despite all the protests and calls for reversal of the move,an article in the latest edition of CPIs weekly mouthpiece New Age surprisingly suggests some steps to make the disinvestment process a success.
It accepts that the government is serious about making a part sale of its stocks in select PSUs and points out that the criterion for pricing these stocks or fixation of their price bands will hold the key to the success of the disinvestment programme. The stocks of the PSUs are grossly undervalued compared to their private sector counterparts,it notes.
So,while the Left is busy chalking out an agitation against the disinvestment move,the article asks the government to undertake an equity restructuring exercise in some of the PSUs before putting its shares on the block.
Besides,the PSUs should be allowed to convert a substantial portion of their subscribed equity capital into either zero interest or very low interest long-term bonds to keep the equity capital low and given permission to either buy back shares from the market or acquire shares through a special rights issue for the purpose.
The reasoning capital restructuring will allow the government to realise the true value of its shares from the phased disinvestment exercise now and in future. It will also allow PSUs to hold some shares in their respective companies alongside the government.
In fact,the article says the disinvestment in PSUs should help professionalise their corporate management and not indirectly help ignite the ambition and passion of a few monopolies run by business families to cheaply grab high-value public enterprises.
Americas oil ambitions
The lead editorial in CPM organ Peoples Democracy talks about the vulnerability of Americas Af-Pak policy in the context of the increasing attacks in Pakistan.
It says no solution to the Afghan imbroglio is possible unless the US abandons the pursuit of its oil and gas interests in that country through military means. The article argues that Afghanistan occupies a central position in the US strategy for the economic control of the oil and gas resources in West Asia and cites the US governments nine-year-old energy information fact sheet on Afghanistan to back its argument.
Afghanistans significance from an energy standpoint stems from its geographic position as a potential transit route for oil and natural gas exports from Central Asia to the Arabian Sea, it quotes from the document.
The way forward
At a time when the CPM and the Left in India are facing serious electoral reverses and their quest for anchoring an alternative has failed,the comrades will join Communist and Workers parties from across the country to do some serious soul-searching about the relevance of Marxism-Leninism.
The occasion would be the 11th International meeting of the Communist and Workers Parties to be held in Delhi later this month. For the CPM and CPI,which is jointly hosting the conference,it is undoubtedly a big event. An article in Peoples Democracy says representatives from 87 countries are expected to take part.
The global economic meltdown is going to be the key topic for discussion. In the run up to the conference,Peoples Democracy claims that the meeting would bring peoples issues to the forefront and offer a real alternative solution to the crisis.
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