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CPI(M) supports Buddhadeb Bhattacharjee’s reforms with rider

	September 05, 2005

The CPI(M) has supported the economic policies pursued by West Bengal Chief Minister Buddhadeb Bhattacharjee and especially his efforts to woo foreign investors. But the party has put the rider that it should be well within the foreign direct investment limits stipulated by the Centre. At the CPI(M) politburo meeting in New Delhi on Friday, September 2, the party said that there is nothing wrong with Bhattacharjee’s model of extending invitation to foreign investors from Singapore and Indonesia to invest in the state. It said that the Chief Minister’s stand is in line with the decisions taken at the 18th party congress held in April. Politburo member and party MP Sitaram Yechury said, “There is no controversy in the party on the questions raised by Bhattacharjee.”

The CPI(M), however, ruled out the possibility of allowing 100 per cent foreign direct investment in greenfield projects announced by the Chief Minister. Yechury said, “The Central Government rules clearly stipulate that no FDI beyond the permissible ceiling of 49 per cent is allowed. There is no question of allowing 100 per cent FDI.”

CPI(M) state secretary Anil Biswas said while allocating plots to foreign investors in West Bengal, care would be taken to exclude agricultural land from the ambit of any proposal. The matter was discussed in detail by the Politburo. “The agricultural lands will not be touched or disturbed,” Yechury said. He said in exceptional cases, for example, in case some agricultural pockets were there in 5,000 acres of contiguous land, the land owners would be “properly compensated.”

While Sitaram Yechury insisted that whatever the Chief Minister was doing was well within the approved policies of the party, a confident Bhattacharjee - who submitted a report on his trip to Singapore and Indonesia and his efforts to woo foreign investors to the state - said there was no reason why he should backtrack on his policies.

However, bowing to pressure from its labour wing CITU, the politburo agreed not to allow FDI in airports “at least for the moment,” not even at the greenfield stage. On Bhattacharjee’s invitation for 100 per cent FDI for a second airport in Kolkata, Yechury said it was an “off the cuff remark,” adding “Nothing has been decided. No survey has been done.”

The politburo meeting is followed by a three-day meeting of the party’s central committee. Top CPI(M) sources said once the central committee puts its seal of approval on Bhattacharjee’s policies - which they say is a virtual certainty - the party will on the one hand showcase West Bengal as a developmental model for the whole country, and on the other portray itself as the true opposition to the “anti-people” policies of the UPA Government.



CPI(M) rules out returning to the coordination committee

In another significant decision, the politburo decided against returning to the UPA-Left Coordination Committee meetings. “We have told the UPA chairperson that we cannot go back to the coordination committee unless the Government formally says it will not divest Navratana companies and will stick to the CMP,” Yechury said.

“We suspended participation in the coordination committee meetings on the issue of BHEL disinvestment which is a clear violation of the CMP.” Yechury said. He appealed to UPA Chairperson Sonia Gandhi to adhere to the CMP on the issue of off-loading of shares in the profit making “Navratana companies.”



Chief Minister moderates stand after meeting Prakash Karat

Earlier in the week, Chief Minister Buddhadeb Bhattacharjee changed his tack on economic reforms after a meeting with CPI(M) general secretary Prakash Karat in New Delhi on his way back to Kolkata from his visit to Singapore and Indonesia. During his foreign tour he had said that the only alternative before the developing nations is to “reform or perish.” But on his return to Kolkata, Bhattacharjee clarified on Monday, August 29, “I meant land reform and restructuring of sick public sector undertakings.”

About a second airport for Kolkata, Bhattacharjee had this to say, “When they asked me whether Dum Dum airport would be sufficient, I told them we are looking for a second airport, a private one with 49 per cent foreign direct investment (FDI). That is what the Government of India policy is.”

Bhattacharjee insisted at the Press conference that Marxism too should undergo reforms. He said, “It is not a dogma. It is a science. We have to learn truth from facts,” he said.

Dwelling at length on how he planned to junk “the dogmas”, Buddhadeb gave the example of Indonesian giant Salim Group, who he has invited to invest in the state. He said the group’s past association with staunch anti-Communist Suharto mattered little to him.

“It is nonsense to take up such past issues. Why are then Vietnam and China inviting American capital ? I don’t see the colour of capital. Only thing is I will not accept black money or money from smugglers. I have no other inhibition,” he said.

Asked whether his ideas of reform were similar to those of Prime Minister Manmohan Singh, he said, “It is for you to analyse.” But, Buddhadeb was quick to point out the difference: approach to disinvestment. “We are privatising only loss-making PSUs. But the Centre is disinvesting navratana companies.”

Meanwhile, the West Bengal unit of the CPI has taken strong objection to party general secretary A.B. Bardhan’s description of Salim Group’s political past as a “non-issue.”



Jyoti Basu backs Bhattacharjee

Veteran CPI(M) leader Jyoti Basu has supported the Chief Minister’s ambitious plan to build an industrial park in West Bengal with the help of Indonesia’s Salim Group. Speaking in Kolkata, Jyoti Basu said, “There is absolutely nothing unfair in what Buddhadeb is doing with the Salim Group. There is absolutely no problem.”

When asked about voices of protest from within the Left Front - most loud being that of the Forward Bloc - Basu said : “The Left partners have misunderstood Buddha’s trip to Indonesia and Singapore. What’s wrong in it ? Nothing. Buddhadeb has already explained everything through a press conference.”



CPI(M) calls upon secular parties to close ranks in Bihar

The CPI(M) politburo’s discussion on the political situation in the country centred around the coming Assembly elections in Bihar. The party emphasized that secular parties would have to close ranks to check any BJP-JDU challenge in the state. In the party’s assessment, the RJD represented the biggest secular force in Bihar.

The CPI(M) reviewed the situation in Haryana where houses of dalits were set ablaze in Gohana by a crowd on August 31. It demanded action against the district authorities for their failure to prevent the incident. The party urged Union Home Minister Shivraj Patil to order a CBI probe into the incident.

The CPI(M) politburo discussed the international scenario in the context of what it thinks the UPA Government coming too close to the United States. Earlier, Prakash Karat had said in Chennai on Monday, August 29, that the CPI(M) had serious objections to the military cooperation agreement with the United States and also the “overall approach and content” of the recent joint statement signed at the end of the Prime Minister’s visit to Washington. Prakash Karat said, “There was a clear provision made in the Common Minimum Programme that India will pursue an independent foreign policy. Secondly, India will play a role in world relations that will promote multi-polarity. Our disappointment is that this India-US defence agreement in particular goes against the provisions of the CMP.” He said that it was not an agreement that took into consideration India’s security interests.

“What is there in this defence framework agreement is how the US would like to involve India in its military strategy which will help them to contain China. America’s strategic goals in Asia are sought to be met through this agreement.”

Through the agreement, the US had tried to make India a strategic ally to carry out its designs in Asia, he said and added that this was only a continuation of the policies of the earlier NDA Government. The NDA wanted India recognised as a country with nuclear weapons at any cost and was prepared to do anything for the US, he charged and added that the act of the Indian Navy escorting US warships across the Malacca Straits and the Strobe Talbott-Jaswant Singh meetings in third countries only went to prove the extent of India’s desperation. These led to India “being converted virtually into a junior partner of the United States,” he said.



CPI(M) opposes privatisation of Delhi and Mumbai airports

The CPI(M) has called upon the Manmohan Singh Government to halt the bidding process for the privatisation of Delhi and Mumbai airports. In a statement issued last week, the party said that the Central Government had overlooked several key concerns and until these were addressed, it expected the bidding process to be stopped. The main concern of the CPI(M) was that the sustainability of other airports in the country including that of Kolkata was linked with the profit earned by Delhi and Mumbai airports. Its fear is that the smaller airports would suffer when Mumbai and Delhi airports are privatised.

Its Left-front ally, the CPI, has, however, taken a different stand on the privatisation of Delhi and Mumbai airports. CPI general secretary A.B. Bardhan said that the profits from Delhi and Mumbai airports would accrue to the Airports Authority of India. According to him whatever profit comes from these airports, will go towards modernisation of other airports.



Left joins BJP in opposing retail FDI

Earlier, on the last day of the Parliament session on August 30, the Left parties joined the Opposition in warning the Government against allowing foreign direct investment in the retail sector. Speaking in the Rajya Sabha, senior BJP leader Murli Manohar Joshi wanted an assurance from the Government that a decision on the issue would not be taken without consulting political parties and parliament. Brinda Karat of the CPI(M) said that FDI in retail was likely to affect the livelihood of lakhs of people. Nilotpal Basu of the CPI(M) said any decision on FDI without consulting them would amount to violation of the CMP.

The entire opposition, including the Left parties and Samajwadi Party members voiced their opposition to FDI in retail.