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UPA Government : Left locks horns over economic issues

	July 04, 2005

Differences between the Manmohan Singh Government and the Left parties supporting it from outside, continue to deepen with UPA Chairperson Sonia Gandhi failing to break the deadlock over the disinvestment in Bharat Heavy Electricals Ltd. (BHEL). Her meeting on Friday, July 1, with CPI(M) general secretary Prakash Karat and CPI national secretary D. Raja ended without any positive outcome. Congress spokesperson Abhishek Singhvi said later, “There is nothing to report by way of a final decision.” But, he said, they are confident of a proper constructive solution in the near future.

Sonia Gandhi’s Friday meeting with the leaders of the two Communist parties was the first formal interaction with the Left leaders after they wrote to the UPA Chairperson on Sunday, June 26, conveying their decision to suspend participation in the UPA-Left coordination committee meetings, in protest against what they called “a serious violation” of the Common Minimum Programme (CMP). Earlier, Sonia Gandhi had a telephonic talk with Prakash Karat from Himachal Pradesh, where she was on a holiday.

Karat and D. Raja said at a press briefing after their meeting with Sonia Gandhi that the Left parties stick to their stand of total opposition to disinvestment of Government stake in Navaratna companies like BHEL. They said there is no ambiguity in the CMP over the issue. D. Raja emphasised that public sector undertakings were the strength of economic development and self-reliance, besides providing employment to the scheduled castes and tribes and other backward classes.

The two Left leaders said that Sonia Gandhi was of the view that a way should be found for the early settlement of the matter. They also hoped that discussions will help resolve the issue. Sonia Gandhi wanted to know from the Left leaders how the Government could raise resources to fund social sector commitments as promised in the CMP.

The Left leaders said that they had submitted a note to the Finance Minister before the last Budget and that this was a separate issue. Raja said the huge reserves of the PSUs could be put to use. The Government could also think of innovative methods.

All India Forward Bloc general secretary Debabrata Biswas said there was no scope for the Left parties compromising their stand on the BHEL issue. He was in contact with Karat.

The AIFB would discuss the developments at its central committee meeting in Kolkata between July 8 and 10. “It is a policy issue based on the commitment in the CMP and there could be no dilution,” he added.



Another round likely today

There are reports that Sonia Gandhi may hold another round of discussions with the Left parties on Monday (July 4) after conferring with the Prime Minister and other senior colleagues. One side effect of the UPA-Left differences is delay in the proposed cabinet expansion which has been widely talked about for the last few weeks. Reports say that the Left parties have taken an adamant stand on the BHEL disinvestment issue. From all accounts, it would not be easy for the two sides to find a common meeting ground. The Left has publicly ruled out any give-and-take on BHEL; they want a total rollback of the decision to sell ten per cent government stake in the Navaratna company. The Left parties are reported to have turned down any change in their stand even if the Government reduced the disinvestment level from 10 per cent to 5 per cent or even less - a formula reportedly being explored.



DMK supports the Left

The DMK has supported the Left parties on the issue of BHEL disinvestment and said that the Manmohan Singh Government should stick to the Common Minimum Programme. DMK President M. Karunanidhi has written to UPA Chairperson Sonia Gandhi and Prime Minister Manmohan Singh asking them to stick to the CMP. Karunanidhi’s decision to back the Left is being seen by observers as a pointer to the Assembly elections in Tamil Nadu next year. The DMK may tie up with the Left during the Assembly polls.

Observers attribute the Left’s strident attitude to the Assembly elections due in West Bengal and Kerala next year. They say that the CPI(M) needs to retain West Bengal, regain Kerala and improve its tally in Assam which is also going to the polls. So the Left will have to raise issues which can catch the people’s attention. And, as the situation is, there is no dearth of issues to rake up - from petroleum price hike to disinvestment of public sector undertakings, from power reforms to labour laws. The Left and especially the CPI(M), need to hold on to image of “struggle” against the Congress-led UPA Government to convince voters in its home turf of West Bengal. But at the same time, the CPI(M) would not like to dislodge the UPA Government. The party would not like the anti-Left votes in West Bengal to consolidate in favour of Mamata Banerjee’s Trinamul Congress before the Assembly elections.

Reports say that the Left cadres at the grassroots level are frustrated because of differences over support to the Congress at the Centre. There are internal reports of ‘inactivity’ among party cadres. Steps like opting out of the UPA Coordination Committee meetings will help appease these sections.

In Kerala, the only thing that can still hold together the CPI(M) - divided sharply between V.S. Achuthanandan-led hardliners and Pinarayi Vijayan’s reformists - is anti-Congressism.

A more worrying prospect for the CPI(M) leadership, however, is the increasing disillusionment and undercurrents of dissent, particularly each time Left MPs need to raise hands when the Finance Minister comes up with something that rubs them the wrong way.



First major shock for UPA Government

The Left parties’ decision not to take part in the UPA-Left Coordination Committee meetings came as the first major shock to the Manmohan Singh government after it assumed office in May last year. Speaking after the Left meeting on June 26, Prakash Karat said, “It is not for the Government to sell their shares and appropriate these proceeds to the exchequer.” On being asked if the UPA Government would last its full term, Karat merely said : “Ask them. We had discussed this issue in October last year when reports started appearing in media regarding 49 per cent disinvestment in select companies,” Karat said.

Attacking the UPA Government, the Left parties further said that they had raised a number of issues connected with the CMP and other policy decisions being taken by the UPA Government which affected the interests of the common people. But “our experience has been that many issues where the Left had disagreements, the Government nevertheless went ahead with its decisions,” Karat said.

CPI general secretary A.B. Bardhan said : “What is disturbing is the frequently repeated assertion by a senior minister of this government.” Sources said the target of his attack was P. Chidambaram.

The Left parties fear that the Government is not only intending to disinvest BHEL, but also NTPC, ONGC and other Navaratnas and profit-making PSUs, Bardhan said.

“We cannot understand or accept this interpretation of the difference between 51 per cent and 49 per cent disinvestment,” the CPI veteran said and added that any change in the equity structure could alter the basic character of a PSU itself.



Action Day to protest Petro price hike

The Left parties organised an Action Day on June 28 to protest against the hike in petroleum and diesel prices and the decision of the Government to disinvest its stake in BHEL. The agitation was most successful in Left-ruled states like West Bengal and Tripura. In Kerala, where the Left has a sizeable presence, the impact of noticeable. In other states, the response to the strike call was lukewarm. In the capital, workers of Left parties took to the streets, resulting in disruption of traffic.