People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)


No. 46

November 15, 2009

AIIEA Opposes Disinvestment Move


IN a statement issued from New Delhi on November 7 by its general secretary K Venu Gopal, the All India Insurance Employees� Association (AIIEA) has expressed its association to the decision of the UPA government to proceed with the process of disinvestment of public sector undertakings (PSUs) on a massive scale.

The statement noted that meeting on November 5 under the chairmanship of the prime minister, the Cabinet Committee on Economic Affairs (CCEA) directed more than 40 PSUs, which are already listed for disinvestment up to 10 per cent of their shares, and another 100 profit making PSUs to go public.   According to reports, the 100 PSUs which qualify for listing include the BSNL.

The AIIEA has also criticised the government�s intention to bring down its stake in these enterprises to 51 per cent. Noting that it requires only a small further step to bring down the government share to below 50 per cent, the AIIEA said this is a clear roadmap for the privatisation of the public sector units. 

Though the government says that the proceeds of the disinvestment would go to meet the capital expenditure of the social sector programmes, it is a euphemism for meeting the budgetary deficit.

The AIIEA, which has been opposed to the privatisation of profit making public sector companies, asked all its units across the country to hold protest demonstrations on Monday, November 9. (INN)