Left takes cudgles with PM on Fin sector reforms

New Delhi, Oct 10: Prime Minister Manmohan Singh's statement in London about the government's intent of moving ahead with financial sector reforms and in defence of Special Economic Zones ( SEZs) met with stiff resistance from the Left parties who vowed to oppose these moves tooth and nail.

The top Left leadership said the fianancial sector in the name of greater resource mobilisation is targetting "wrong sources." Listing the financial sector as a high priority, the Prime minsiter had exuded confidece of getting poltical support on financial sector reforms, including Banking, Insurance and Pensions.

Legislation is pending in Parliament regarding Pensions and Insurance and Finance Minister P Chidambaram had indicated recently that funds need to be garnered from sectors for the development of Infrastructure-- roads, ports, airports and seaports. The Prime Minister had also remarked that SEZ's were here to stay, but issues like a fair compensation to oustees need to be settled.

CPI(M) Polit bureau member Sitaram Yechury said the Left parties will oppose any increase in the FDI limit in Insurance, which has a cap of 26 per cent .

Permitting Foregin Banks to take over Indian Private Banks would prove disastrous as the social objectives sought to achieved through the Indian Banking system would remain unfulfilled. Besides, economic sovereignty could be jeopradised, , Mr Yechury said .

CPI General Secretary A B Bardhan said the move to further open up the financial sector, including the Pension Funds, would lead to loot and plunder by the MNC's.

"I would like to remind the Prime Minister of his oft quoted statment empahsing that economic reforms would be carried out with a human face. His latest assertions on economic reforms are in contrane his earlier stand" Mr Bardhan, the veteran Communist and freedom fighter, said.

In sharp reaction to Dr Manmohan Singh's remark on the SEZ's, CPI National Secretary Shamim Faizi and Forward Bloc leader G Devrajan said the government would have to limit their number and that only 50 per cent of the allocated land should be used for industrial and trade purposes.

Mr Yechury said the left had consistently been seeking amendments to the law which permits the setting up of SEZ's."The first such rules regarding takeover of prime agrilcutural land without fair compensation to the farmers will not be allowed." The CPI(M) Parliamentary group leader said the left parties were also seeking an amendment to the tax-benefits given to even to property developers.

Stating that large areas of cultivated land had been acquired in Haryana, Punjab and Uttar Pradesh and other states for creating SEZ's which was "not acceptable." Besides, labour laws are frequently flouted in the case of SEZ's, the left leaders said adding that "the trade unions and Left parties will oppose these violations.

The Left leaders also asked for a revisit to tax sops given to MNC's on one ground or another.

UNI

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