Raja opposes use of PSU surplus fund in mutual fund investment

Bhubaneswar,Aug 01 (UNI) CPI General Secretary D Raja today strongly opposed the cabinet's decision to utilise at least 30 per cent of the surplus fund of the PSUs in mutual fund investment.

'' Such a proposal would only weaken the PSUs and make them more vulnerable,'' Mr Raja said while questioning the economic logic behind the idea.

The CPI leader said instead of investing the surplus fund in the mutual fund, the PSUs should be allowed to invest on their expansion and revival plans for the country's healthy economy.

Mr Raja cautioned the UPA government stating that the political consequences would be very serious and demanded that the UPA government should reconsider such a proposal.

He also made it clear that the left parties would take up the matter at the highest level.

The UPA, the CPI leader said, should review its own performances otherwise the left parties would be forced to redefine the agenda to the UPA government.

The CPI General secretary further said in the name of financial liberalisations, the UPA government has been taking very 'atrocious decisions' and cited the recent recommendation of the RBI technical committee that the Commercial Banks should advance money to the Accredited Loan Provider(ALP).

Criticising such recommendation, which was likely to be endorsed by the UPA government, Mr Raja said such proposal would legalise the private money lenders adding that the CPI would vehemently oppose the step.

UNI