The Left Front's economic policies may continue to haunt the UPA government as the Trinamool Congress, largest ally of the Congress, is opposed to divestment of public sector insurance companies, strategic sale of profitable PSUs and entry of big capital in the retail sector.
TC leader Partha Chatterjee said the party would oppose any move to divest public sector companies or strategic sales of profitable PSUs. TC, which has been campaigning against big capital in the retail sector in West Bengal, also mentioned in its manifesto that it is against domestic or foreign capital in retail.
According to Chatterjee, in PSUs where majority holding was with financial institutions, the party would not oppose divestment. But TC was opposed to divestment in a PSU, where the controlling stake was with the government.
In West Bengal, the heavy industries ministry of the UPA government in its last term cleared stake sale in Andrew Yule's subsidiaries, namely DPSC, Tide Water Oil (India) and Phoenix Yule. "We cannot do anything about what has already been cleared," said Chatterjee.
Even though the party is opposed to strategic sale of profitable PSUs, disinvestment by way of an initial public offering is acceptable. "An IPO will infuse funds into the PSU and help it function better," said Chatterjee.
The UPA government has lined up several PSUs for disinvestment through market offering and there could be some strategic sale, as well. Banking, pension, insurance and banking reforms are also high on the agenda of the government.
The TC leader said, in its initial meetings, the UPA government had indicated that its priority areas were infrastructure and rural development. "Divestment is not the UPA government's priority," said Chatterjee.
The UPA government in its earlier stint had faced stiff resistance from the Left Front on the same issues. One of the main reasons behind the market rejoicing after the election results was that the UPA government would not have the Left as its ally and the pace of economic reforms would pick up. Divestment in PSUs, banking and insurance sector reforms and FDI in the retail sectors have been pet subjects with the Left Front.
