CPI not obsessed with PSUs: Bardhan

Apparently softening its stand on privatisation, the CPI yesterday said it was not "obsessed" with public sector undertakings (PSUs) and wanted all facilities to be given to the private sector to help it flourish, provided it generated employment.

Speaking at a seminar on employment and economic growth here, CPI General Secretary AB Bardhan opposed the foreign direct investment in sectors like civil aviation, telecom and insurance but said his party "welcomed" the foreign direct investment for equity infusion and green field projects which he did not specify.

"We are not obsessed with PSUs. We believe the private sector has to grow and all facilities have to be given to it, but this is no reason to disinvest every public sector undertaking as if they are the cause of every evil on earth," he said.

The FDI should be allowed only in such sectors and on such conditions which ensured that the country's integrity was not affected, he said.

"Many multinational companies are known not to respect national laws and I do not see why the foreign direct investment should be brought in such a way that they take a grip on the country's public sector undertakings and industry.

"However, if they are coming in for green field projects or equity infusion, they are welcome," he said.

Bardhan said his party believed that economic growth had to go hand in hand with employment generation. He praised Prime Minister Manmohan Singh's "realistic speech" on Independence Day but said employment generation should have been given great-er priority in the seven areas identified for special attention.

Bardhan criticised Finance Minister P Chidambaram for de-reserving 84 items from the small-scale industry list.