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CPI-M opposes divestment, calls it 'loot of public assets'

The Communist Party of India-Marxist today asked the government to abandon the move to disinvest shares of public sector undertakings and instead first get Parliament approval for the move.

The CPI-M said it is opposed to the reported government proposal to transfer 51 per cent shares of the PSUs to a National Shareholding Trust or a Special Purpose Vehicle. It is also opposed to the idea of asking financial institutions and banks to buy shares from the NST or the SPV and later sell them in the market when conditions improved.

The party said the proposals are aimed at hastening the privatisation of the PSUs.

The just concluded disinvestment of $ 9 million worth of shares in the state-owned Container Corporation of India had been done at 35 per cent below the price level prevailing before the slump in the stock market. ''This is nothing but loot of the public assets,'' the party added.

UNI

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