Govt gets it Left, Right for letting private players manage PF fund
The government’s decision to end the monopoly of state-owned SBI in managing provident fund, totaling about Rs 2.5 lakh crore, by allowing three private players drew strong criticism of the Left and the BJP.business Updated: Jul 30, 2008 23:59 IST
The government’s decision to end the monopoly of state-owned SBI in managing provident fund, totaling about Rs 2.5 lakh crore, by allowing three private players including Reliance Capital, drew strong criticism of the Left and the BJP.
Reacting to the decision of the Central Board of Trustees of Provident Fund to allow Reliance Capital, ICICI Prudential, HSBC and SBI to manage provident fund of employees, the CPI(M) said the inclusion of Anil Ambani-led Reliance Capital was an indication of the “cost” the UPA paid for ensuring support for the government.
Strongly opposing the decision of the EPF trustees to “hand over huge amounts” of workers’ Provident Fund contributions, the CPI(M)’s polit buro said, “By this decision, around Rs 2,40,000 crore in the corpus fund and another Rs 30,000 crore of the annual incremental fund, will be literally gifted to the corporates”.
It also “noted” that the decision marked the beginning of a process of privatisation of workers and employees savings which had been “strongly opposed by the CPI(M), which had ensured that the UPA government did not go ahead with this anti-worker policy”.