CPM attempts to put Kerala unit in order

The issue of foreign loans dominated the discussions on the second day of the CPI(M) Central Committee meeting, even as party leaders set the tone for a fresh attack on the UPA regime for its economic and foreign policies.

Having failed to resolve the internecine feuds in the party's Kerala unit at the CC meeting in the past two days, the Politburo held an emergency meeting today to discuss the issue of Asian Development Bank loan that had kick-started the latest round of duel between Chief Minister VS Achuthanandan and state secretary of the CPI(M) Pinarayi Vijayan.

They were learnt to have discussed the ADB loan package for Kerala Sustainable Urban Development Project in the light of the 18th Party Congress's guidelines for such loans "" no conditionalities like structural adjustment, downsizing of manpower, withdrawal of subsidies, or fiscal correction.

According to party sources, the ADB loan to help Left-dominated municipal corporations in Kerala did not violate the above-mentioned criteria, "although we have to go through the agreement papers that were furnished to us today before we take a final decision."

The Kerala CM has gone public with his reservation about the agreement, pushed by the Vijayan faction. The Central Committee was of the view that there was no problem with foreign loans as long as they met the criteria prescribed by the Party Congress.

The controversial issue of land acquisition in Singur appeared to be settled for the party as the central leadership expressed satisfaction with the presentation of West Bengal Industries Minister Nirupam Sen about the status of the project. CC members have, however, suggested a new land use policy to avoid any such controversy in future.

On Wednesday, the CC also took stock of the UPA regime's economic and foreign policies. The economic policies, in particular, came in for sharp criticism as party leaders took note of the government's recent move to allow FDI in select segments.

There were fresh demands for changes in the Special Economic Zone Act and Rules. In its resolution to be adopted at the end of CC meeting on Thursday, the CPI(M) is set to reiterate its stance on all these issues and issue a strong warning, according to party sources.

The focus of the CC deliberations has so far been the need for better co-ordination between the party and the government, especially in Kerala.

Addressing the CC, general secretary Prakash Karat was emphatic about the party's disapproval of any slanging match played in public among the party leaders and between the party and the government.