DMK steals Left's thunder

WHO IS SAYING WHAT

The Left parties on Thursday welcomed the UPA regime's decision to put on hold disinvestment of shares from PSUs, but they were apparently more anxious about the DMK getting all the credit for what has been a pet subject of the Left.

"DMK's threat may have been the proverbial last straw that breaks the camel's back, but it does not mean that the beatings it got earlier were ineffective. We have always kept the pressure on the government. It's a question of principle," said CPI(M) Politburo member Sitaram Yechury.

He also demanded clarification from the government as to what the future holds for PSUs in the context of disinvestment.

Although CPI(M) general secretary Prakash Karat 'appreciated' the stand taken by Tamil Nadu Chief Minister M Karunanidhi "in defence of the public sector", his party colleagues were quick to pick holes questioning the DMK's commitment to the welfare of workers given the fact that the same party and its representatives in the Union Cabinet had earlier supported the government's decision to offload 10 per cent equity from Neyveli Lignite Corporation and Nalco.

"Now that they have committed themselves against privatisation, we have to see what they do on the privatisation of Chennai airport - which Karunanidhi government supports - and on the issue of FDI in telecom sector," said a senior Left leader.

CPI(M) leaders were of the view that the government's decision did not mean an end to the disinvestment process. They said that they remained opposed to any disinvestment from profit-making PSUs, but were open to talk about disinvestment of loss-making and irretrievable PSUs "on case by case basis".

The Left parties will go ahead with their week-long nationwide agitation on price-rise from July 13.

"The agitation had been called on two issues. One is disinvestment in Nalco and NLC and other is against increase in the prices of essential commodities. So it will take place as planned," Yechury said.

Meanwhile, with the UPA regime forced to backtrack on the issue of disinvestment by one of its allies, the Congress today put up a brave face saying that the party believed in 'coalition dharma' and it was its duty to address the concerns of its allies.

The party, however, maintained that the process of disinvestment will go on, even while the government negotiates with the DMK in Tamil Nadu and agitating parties in Orissa to address their concerns about disinvestment of NLC and Nalco.

"Addressing the concerns of an ally does not mean rollback. We are sure the prime minister will address the concerns (of Karunanidhi)," Congress spokesperson Jayanti Natarajan said.

A compromise, says BJP

The BJP today said the prime minister's decision to put on hold all disinvestment was a political compromise not the act of a man in charge of his government. BJP spokesperson Prakash Javadekar called the move a compromise with economic reforms because of political pressure.

"This clearly shows that the UPA is not committed to reforms, but is committed to power only. The prime minister has compromised the UPA's own pro-reforms agenda," Javadekar said.

Also, he alleged that the DMK forcing the government to put all disinvestment plans on hold over the ally's stand on Neyveli stakes reflected the fragility of the ruling coalition. "It has once again proved that the UPA alliance is a marriage of convenience, a fragile partnership," Javadekar said.

The BJP leader also attacked the Left for what he called its inability to force the government to roll back the increases in fuel prices.

"If the DMK can have their way in one day, why can't the Left. Why is the Left unable to force the government to withdraw increases in fuel prices? Why can't it force the government to take some effective measures to control prices of essential commodities?" he asked.

India Inc concerned

India Inc gave a thumbs down to the government's decision to put all disinvestment decisions on hold and said that it was a matter of serious concern. It sees the move as a question mark on the commitment of the government to push ahead with the reforms process.

The industry chambers have asked the government to review the decision in due course keeping in view the broader interests of the Indian economy and attractiveness of India for global investors.

Confederation of Indian Industry (CII) said that since large public investments were required in critical areas like education, health and infrastructure, government could face major resource constraints without disinvestment.

CII also demanded speedy decision-making on disinvestments, in consultation with the constituents of the United Progressive Alliance, such that the economy grew unimpeded.

The Federation of Indian Chambers of Commerce and Industry (FICCI) said this move would send wrong signals about the future of reforms programme of the country.

FICCI president Saroj Kumar Poddar said the disinvestment of PSU shares had played a critical role in the development of the Indian capital market since reforms were started in 1991.