Decision on FDI will erode sovereignty, says Left

By Our Special Correspondent

NEW DELHI, JUNE 13. The Left parties today came out strongly against the Vajpayee Government's decision to allow 100 per cent equity in power and oil sectors saying it would ``erode'' the country's economic sovereignty.

They asked trade unions and other mass organisations to ``resist'' the decision and mobilise opinion against it.

The CPI(M) accused the Government of ``disregarding'' the country's vital interests and said it seemed determined to ``stifle'' domestic enterprises and hand over all key sectors of the Indian economy to foreign capital.

Criticising the decision to do away with the ceiling of Rs. 1,500 crores for automatic approval of 100 per cent foreign investment in the power sector, the party's politburo said it did not take into account the earlier experience of having wholly-owned foreign enterprises in this sector. The cost of power had then been ``hiked enormously''.

Allowing 100 per cent foreign investment in petroleum refining, it said, would ``further downgrade'' the public sector in the oil industry.

``The decision to do away with the requirement that foreign companies should compensate the dividend repatriated abroad in equivalent export earnings in 22 consumer goods industries is another step that would deprive the country of foreign exchange earnings,'' it said.

The CPI central secretariat said the removal of export obligations would further benefit big business houses. The party would oppose ``handing over'' of vital infrastructure such as power and petroleum sector to the multinational corporations.

The CPI(M-L) charged that the Government was ``squandering away vital national assets'' in the name of economic liberalisation, and its latest decision would have ``detrimental effect'' on the economy.

Send this article to Friends by E-Mail

Section  : National
Previous : Christian forum calls for secular front
Next     : Moopanar must lead third front in T.N.: Swamy