CPM meet frowns on Bhel sell-off, retail FDI

Cabinet divided over oil price hike: Basu

Sounding a warning on the disinvestment front, the CPI(M) today said the United Progressive Alliance (UPA) had departed from the National Common Minimum Programme (NCMP) in some areas, particularly in its decision to disinvest central public sector undertakings (PSUs) such as Bharat Heavy Electricals Ltd (Bhel).

"Adherence to the CMP is a guarantee of the stability of the government at the Centre," CPI(M) Politburo member Sitaram Yechuri said. He said the Left would take up the issue with the government.

Left opposition to disinvestment and FDI are the key issues likely to be discussed at the Central Committee meeting of the CPI(M), which began today and will be on till Sunday.

The CPI(M) is expected to formalise its stand on disinvestment in the states as distinct from disinvestment at the Centre. A debate on this issue was started at the 18th Party Congress the CPI(M) held in Delhi in the first week of April.

CPI(M) veteran Jyoti Basu too expressed unhappiness over the Bhel move and allowing foreign direct investment (FDI) in retail sector. "We will oppose any such move both inside and outside Parliament," he said.

About disinvestment, Basu rather puzzlingly said, "They (UPA government) have been resorting to disinvestment in case of some PSUs, but not everywhere. What they should do is to retain 51 per cent share with the government and leave 49 per cent share for disinvestment."

The CPI(M) has maintained that a further 10 per cent disinvestment in Bhel is a "creeping" disinvestment, though it does not technically compromise the public sector character of the company.

Basu also underlined that there were sharp differences in the Cabinet over the proposed fuel price hike. Though he took no names, Basu was probably talking about Railway Minister Lalu Prasad who has come out against a hike in the fuel prices.

With Bihar heading for Assembly elections, the RJD chief had said in Patna on Thursday that the government should not hike the prices of kerosene and raise that of diesel only marginally, if at all.

Basu said his party would stage a country-wide agitation if the government increased the prices of petrol and diesel. "We will build a big movement against rise in prices of petro-products," he said in Kolkata after a meeting of the party's politburo.

When asked about the formation of a secular alliance in Bihar for the polls, CPI(M) General Secretary Prakash Karat said the matter was not discussed at the meeting. "Elections are far away," he said.