Govt should keep off Mittal bid: CPM

The CPI(M) is piqued at the Central government's perceived interest in steel magnate LN Mittal's bid for Arcelor.

Terming it a "commercial matter", party MP Nilotpal Basu today said it was not an issue on which the UPA government should extend any support.

"If the Indian government kept away from the China National Petroleum Corporation (CNPC)'s controversial bid for Unocol, why should it react now?," he said

"The US then passed a law to stop the Chinese company from taking it over. There was no reaction then. Why is the Indian government reacting this time? The government has to explain why it is so excited," Basu told Business Standard.

Besides, except in Jharkhand, Mittal did not have any investment in India, he said. "He lived and studied in Kolkata but what has he done (for West Bengal)?," Basu said, adding, "We don't think Indian patriotism will be proved by how vociferously we support Mittal."

The CPI(M)'s reaction came two days after Prime Minister Manmohan Singh expressed hope that a fair decision, taking into account all the shareholders, would be taken. Visiting French President Jacques Chirac had denied the charge of racism in Europe's reaction to Mittal Steel's takeover bid but termed it a "hostile bid".

The commerce and industry ministry is also reported to be planning a review of the proposed double taxation avoidance agreement it is negotiating with Luxembourg.

"I do not understand the reason for so much excitement in India over Mittal. Arcelor is an European company. There are provisions in World Trade Organisation (WTO). Whether it's a hostile bid or not is a commercial matter," Basu said.

He said the Indian government should react only if the European countries were violating any laws to foil the takeover bid. "Otherwise there is no need for this patriotic fervour. We are often asked not to mix politics with economics. What is this government doing now?" he said.

In a separate development, the CPI(M) today said it would seek a structured debate in Parliament over the Indo-US nuclear deal. The government should place the papers related to the negotiations on the table of the House, it said.

Terming it a "national embarrassment" that the US Congress was discussing the Indian proposals while the political parties here were in the dark, Basu said, "It cannot take place clandestinely. We also understand that everything cannot be shared but the broad contours of the negotiating position can be shared."