People's Democracy

OPPOSING CREEPING PRIVATISATION

Left Suspends Participation In UPA Committee

IN a major decision, taken after a hour long meeting of the four Left parties – CPI(M), CPI, RSP and Forward Bloc – in New Delhi at the CPI(M) headquarters on June 26, CPI(M) general secretary Prakash Karat announced “suspension of the Left parties participation in the UPA-Left coordination committee.”

The meeting discussed the government decision on disinvestment of shares in the navaratna companies in the context of the Common Minimum Programme. Noting that the government’s decision to sell 10 per cent of its equity in BHEL as the “first serious violation of the CMP”, the Left stated that this was nothing but creeping privatisation of profitable public sector units.

Prakash Karat addressed a crowded press conference at A K Gopalan Bhawan along with CPI general secretary A B Bardhan, RSP general secretary Abani Roy and Forward Bloc general secretary Debabrata Biswas on June 26. A letter written to the UPA chairperson Sonia Gandhi by the leaders of the four Left parties was also released to the press on this occasion. A copy of the letter was marked to the prime minister Dr Manmohan Singh.

The UPA-Left coordination committee, it was noted despite discussing various issues from time to time, had been unable to secure UPA government’s adherence to the CMP commitments. Seeing the BHEL decision as “creeping privatisation” of profitable public sector units, the Left leaders told the press of their painful decision to suspend participation in Coordination Committee meetings with the United Progressive Alliance (UPA).

In reply to repeated questions, Prakash Karat said ‘we are extending support, but there will be no coordination’. He added that the UPA government must stop disinvestment process and discuss the matter seriously.  This is of vital concern for the people and the country.

It may be recalled that the Left parties had cautioned the UPA government in various meetings of the coordination committee to stop this disinvestment process and discuss this matter seriously as it is of vital concern to the people and the country.

Following is the full text of the letter sent to UPA chairperson Sonia Gandhi. The letter was signed by Prakash Karat (CPI-M), A B Bardhan (CPI), Abani Roy (RSP) and Debabrata Biswas (Forward Bloc).

Dear Mrs Gandhi,

When the UPA government was formed, the Left parties decided to extend support to it keeping in mind the verdict of the people who had rejected the policies of the previous NDA government. At that time, all of us felt it necessary to set up a Coordination Committee of the UPA and the Left to discuss the implementation of the Common Minimum Programme (CMP) and other policy issues.

In the meetings of the Coordination Committee, which you kindly convened from time to time, the Left parties raised a number of issues connected with the CMP and other policy decisions being taken by the UPA government which affected the interests of the common people and the country as a whole. Our experience has been that on many issues where the Left had disagreements, the government nevertheless went ahead with its decisions.

What has perturbed us most is the manner in which the government has decided to go ahead with the disinvestment of shares in the BHEL, to be followed by other navaratanas and profitable public sector units. The finance minister has set a target of realising Rs 10,000 crore in the union budget for 2005-06.

The CMP states, "navaratna companies to be retained in the public sector while they raise resources from the market”. There is no scope for misunderstanding here. The navaratnas like the BHEL can go to the market for raising capital for their own needs. It is not for the government to sell their shares and appropriate those proceeds. The proposal for a national investment fund is merely a mechanism to facilitate the government appropriating the proceeds of disinvestment.

It is well known that successive rounds of disinvestment will pave the way for the eventual privatisation of the concerned PSUs. It is not enough to say "disinvestment" does not mean privatisation. We are surprised by the repeated assertion that the government will retain 51 per cent share in these enterprises which means that it intends to sell off 49 per cent shares.  From 51 per cent to 49 per cent is just a small step.  It is creeping privatisation.

This step taken by the UPA government is the first serious violation of the CMP. The UPA-Left Coordination Committee, despite discussing the matter, has been unable to ensure adherence to the CMP commitment.

In the light of this, we find no useful purpose will be served in attending meetings of the Coordination Committee.  Therefore, we have decided to regretfully suspend our participation in the Coordination Committee.” (INN)