CPI opposes bailout package for Indian Inc

New Delhi, Nov 04 (UNI) Communist Party of India today strongly opposed any bailout package for Indian corporates, saying it would enrich the private sector.

The Left party also warned the UPA government against forging any economic understanding with the United States to help India come out of the current economic meltdown, claiming ''it will weaken India''.

Speaking on ''Financial Meltdown : Lessons from Sub-Prime Crisis'', CPI National Secretary D Raja also cautioned Reserve Bank to stop relaxing its monetary policies as these would directly benefit private trade and widen financial disparities across the social spectrum in the country.

In a keynote address organised by industry chamber Assocham, the communist leader said the government should directly intervene with ''nationalisation threat'' in those utilities which intend to lay off people.

''The Prime Minister should come forward with a threat of nationalisation against those utilities in private sector that have secret plans to downsize their workforce with an intended purpose to further accelerate their profits on pretext of slowdown,'' said Raja.

Opposing any bailout package for private sector, he said if any such package was in offing, it should go to public sector which has kept the country largely insulated from global financial crisis.

The Left leader sought democratisation of multilateral institutions such as International Monetary Fund, World Bank and Asian Development Bank which, he said, are controlled by the United States.

The economic and military hegemony of US should no longer be allowed to influence India as it is one of the most vibrant democracy in the world which would shortly become another economic superpower after China,'' Raja said.

The communist leader said economic slowdown will last longer in India if public investments in agriculture and infrastructure are not increased.

Mr Russell Green from the US Embassy, World Bank economist Dipak Dasgupta, Assocham vice president Dilip Modi among others also spoke at the interactive session.

Barring Mr Raja, all panelists present were hopeful that India would be able to manage the current crisis as its financial system is well regulated and its economic fundamentals are sound.

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