Left parties' meet on selloff soon

An intra-Left meet will be held in the next two or three days to discuss the United Progressive Alliance (UPA) government's strategy of disinvesting profitable public sector units such as Bharat Heavy Electricals Ltd (Bhel) to fund the social sector.

"The Left is not happy with the UPA government over the Bhel issue and that of privatising other profitable PSUs. We are meeting as soon as possible to discuss the matter among ourselves," S Ramachandran Pillai, CPI(M) Politburo member, today said.

At the Left-UPA co-ordination meeting last Sunday, the two sides had made it clear to each other that they had different points of view on selling profitable PSUs for raising funds for health and education schemes.

At that meeting, Prime Minister Manmohan Singh had asked Left leaders that, if not from profit-making PSUs, where else would the money for social sector schemes come from. The Left leaders had replied that raising money for the social sector constituted a completely different debate.

"We told the Prime Minister if the government wanted to raise money for funding social sector schemes, then we would give it alternative suggestions," said D Raja of the CPI.

After the meeting, it became apparent that the government was not going to relent on the Bhel issue. Though in public, the Left agreed to meet among themselves to take a final view on the matter. But privately, Left leaders accepted that Bhel was a closed chapter.

The Left's logic in continuing the debate on Bhel is that if enough pressure is applied, then the government will think twice before disinvesting other profitable PSUs.

Of the other PSUs that the finance ministry has listed for disinvestment, National Aluminum Company (Nalco) figures prominently. The Left has already talked to the Prime Minister about the Nalco disinvestment and got an assurance out of him that it will not be "privatised".

However, it is on the use of the words "privatization" and "disinvestment" that the present controversy hinges.

The Prime Minister believes that "privatisation" and "disinvestment" should not be equated but the Left feels that disinvestment in profitable PSUs is "privatisation through the back-door".

The Left also contends that the two words have been used co-terminously in the national common minimum programme.