During the span of last one week or so the BJP Govt at the centre has taken one after another destructive measures weakening further the foundation of the national economy which is already under severe crisis owing to same destructive and pro-imperialist policies of the Govt. 

The Govt got practically a forcible transfer of Rs 1.76 lakh crore from RBI kitty of reserve to itself to meet its revenue expenditure gap, which is economically imprudent besides being an onslaught on the  autonomy of the Institution through the obliging team of bureaucrats put at the helm of RBI Board.

Second, while lamenting on fiscal deficit, the Finance Minister announced a number of further concessions to business class by way of, inter alia, withdrawal of surcharge on direct  tax etc and liberalization of lending norms etc reportedly for further incentivizing them for investment. Such sops, at the cost of national exchequer are destined to fall flat; in fact, investment-growth has been consistently declining during the span of last five years’ of BJP rule despite showering of huge concessions on them every year through successive budgets and otherwise also.

Third, FDI has been further liberalized and clearance of FDI through automatic route has been recklessly  expanded covering all the strategic sectors of the economy, which will have more destructive impact on the economy instead of employment oriented investment generation. Rather such kind of FDI liberalization, particularly in present global economic scenario will further pounce upon the economic sovereignty of the country.

Hundred percent FDI in single-brand retail Trade was justified and sought to be sold by the previous BJP Govt front-lining the conditionality of 30 per cent sourcing of products from within India claiming to have promoted the domestic manufacturing. Now, that conditionality has been totally eased rather erased in favour of the foreign trading agencies leaving room for widespread evasion, at the cost of domestic retail trade. The 30% sourcing obligation can now be averaged over five years, opening the gate for evading the sourcing obligation for first three /four years and then change the sign-board of the company, a dubious practice  that has been continuing since long in almost all the special economic zones by the private business including foreign entities with impunity.

Allowing 100 percent FDI in coal-mining for all commercial purposes along with 100 percent FDI in contract manufacturing-all through automatic route, will be a severe blow to national coal miner-the Coal India Ltd which has been creditably performing by consistently improving its production performance despite many hurdles created by the Govt itself.  Earlier,  FDI was allowed only for captive mining only. Now that barrier has also been removed allowing the foreign companies to capture control over country’s coal resources for commercial mining including export.

This utterly retrograde move of the Govt on coal mining sector will deprive public sector Coal India Ltd of the level playing field in respect of allocation of new coal bearing areas as well as in cost of production. 100 percent foreign control of a substantial section of  country’s coal reserves with a right to export will also severely hamper the protection of national priorities in meeting increasing domestic requirement of coal both for household consumption and industrial requirement particularly in power, steel, fertilizers and other sectors. And under the present BJP regime, actively playing a partnership role of imperialist powers and always obliging international finance capital, it is but natural that Coal India will be discriminated in respect of allocation of new coal bearing area for mining vis-à-vis the private and foreign players.

Fourth, the Govt has declared its suicidal resolve to go for decisive privatization of CPSUs through multi-pronged routes. Besides strategic sale of major PSUs in steel, pharmaceutical , engineering and other sectors, aggressive steps have already been initiated to sell out around 60% or more Govt equity of CPSUs in the market. The notoriety of the exercise is that the control of a large number of PSUs with huge asset base and capacity shall be captured by the private players and concerned CPSUs will be effectively converted into private companies through very small dose of disinvestment. In order to realize the unprecedented divestment target of Rs 1.05 lakh crore, they have been dispensing with all norms and standing practices and resorting to suicidal shortcut.  The long selloff list reported in the media include all best performers in the strategic sectors – both physically and financially viz., IOC, NTPC, Powergrid, Oil India, GAIL, NALCO, BPCL, EIL, BEML etc. As a consequence of previous tranches of divestment the present Govt equity holding of these CPSUs are around 52% plus or little less. Therefore the ugly game plan is convert these CPSUs into private enterprises only by way of transfer of very small dose of shares to private hands. Country’s wealth will be transferred for private gains on a platter.

In the background of severe crisis in the economy, deepening every day, these moves of the Govt reflects the desperation to benefit only and only the private corporate, both foreign and domestic at the cost of such assets and production structures through a deliberate destructive process.

CITU calls upon the working people and patriotic masses at large from all walks of life to raise their voice of protest against such destructive suicidal onslaught of the Govt of the day on the national economy. CITU also calls upon the working class, particularly those in the concerned sectors which are under immediate attack to unite and fight back these nefarious and anti-people designs and frontal attack on the economic sovereignty of the country.

Issued by
(Tapan Sen)
General Secretary 

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