Bandhs or strikes are not bad, members of the Indian Chamber of Commerce (ICC) were told today by CPI(M) politburo member Sitaram Yechury.
A day's strike should not be condemned after years of profit-making, he added in response to acute displeasure expressed by the industry body on yesterday's 24-hour strike by Left unions.
In reference to the government's policy to control inflation through liquidity squeeze, Yechury said the government’s approach was flawed as the root of inflation was speculative trading in food items, rather than excess money supply.
India would soon face recession if the government continued with its monetary tightening policy as the manufacturing sector was getting hit by rising interest rates, he warned.
Increasing volume of trade in commodity exchanges was clear indication of ballooning speculation.
More than 60 per cent of grain in the country was being traded by big companies, causing inflation, he alleged.
When asked that if bandhs were not hitting the poor the most, Yechury said, "We will do bandhs. There is no other option, as strikes are the last resort to the problems of the working class."
While pointing out that under-recoveries of oil companies should not be confused with losses, he said that contrary to popular perception, the profit of ONGC rose about 40 per cent in recent months.
The Left leader asked industrialists not to exaggerate the benefits of nuclear power as a source of energy, as the huge risks and cost of generating nuclear energy would have to be borne by industry users.
On the issue of Singur, Yechury said he hoped that the issue would be resolved soon as the small car factory project was important for Bengal.
"We hope that the issue will be soon resolved, and the product will be delivered," he said.
He admitted there was a need for a new land acquisition act, which would take into account proper compensation for owners and dependents on land, along with better clarity relating to SEZs, commercial production units and public utilities.
