CPM to review FDI cases in Left-ruled states

In addition to directing governments ruled by the Left Front that not an inch of arable and productive land be allowed for the use of multinational firms, the CPI(M) has decided to review each case of foreign direct investment in states ruled by it.

The review will be within the overall policy guidelines laid down at the CPI(M)'s 18th Party Congress: that FDI will be allowed only if it demonstrably augments production, brings new technology and significantly enhances employment.

This was the only new element in the communique put out by the party after its politburo and central committee meetings held here over the weekend.

Party General Secretary Prakash Karat clarified that none of the policy statements made by West Bengal Chief Minister Buddhadev Bhattacharjee would be reviewed. He was attempting to lend perspective to the implication of party colleague Sitaram Yechury's remarks that the tone of the statements made by the West Bengal Chief Minister were questioned by the party.

The implication of the two meetings was that the central controls on state governments would be tightened in the interests of ideological purity and greater ideological coordination.

It can safely be assumed that if the CPI(M) comes to power in Kerala, as it is widely expected to do after the Assembly elections in 2006, several economic policies of the ruling United Democratic Front (UDF) will be reviewed, recalibrated and even overturned.

The AK Antony-led government had hosted the Global Investors' Meet four years ago, which had a target of foreign investments to the tune of Rs 50,000 crore. Only about Rs 350 crore have come to Kerala, and in the face of acute opposition to the Smart City project launched by the Oomen Chandy government, the chances are this will also dwindle away.

The Left communique claimed credit for action taken on the Nanavati Report on the 1984 riots (that led to Jagdish Tytler's resignation from the council of ministers) and the Rural Employment Guarantee Bill.

The communique reiterated its opposition to the Indo-US agreements, including the defence agreement, and disinvestment in BHEL and the "navaratna" PSUs.It proposed urgent, sweeping oil sector reforms.

About the amendments effected in the Land Reforms Act in West Bengal, the party clarified that the purpose of the move was to release land locked up in closed factories and industries, which ran into 40 thousand acres.

"There was no lowering of the land ceiling or dilution of the land reforms laws. The land ceiling remains the same, 12 acres for irrigated land and 17 acres for unirrigated land," it said.