Left asks govt to put brakes on Power Companies sell-off

New Delhi, Feb 8 (UNI) In a sharp reaction to the Cabinet's decision today to sell off equity in three fully government-owned Power Companes, the CPI(M) asked the government not to proceed with the divestment both through the IPO route and a subsequent piggy back issue.

''The Polit Bureau of the CPI(M) opposes the decision of the government to disinvest shares in Rural Electrification Corporation, Power Grid Corporation and the National Hydro-Electrical Power Corporation,'' the party said in a statement here.

The companies are to garner Rs 2,400 crore through the IPO route and subsequently the government will piggy back an issue from the sale of equity of these companies which will get monies amounting to Rs 1,500 crore for the corpus of the National Investment Fund.

Mr Chidambaram, however, claimed in his cabinet briefing that he had the approval of the CPI(M) having discussed the issue with them where he indicated that the funds will not be used for budgetary purposes but for modernisation of the PSUs and meeting the requirements of the social sector.

''The government should stop the practice of riding piggy back on the IPOs issued by the public sector companies. The CPI (M) calls upon the government not to proceed with the disinvestment of shares alongwith the IPOs,'' the CPI(M) said.

UNI