UPA govt is favouring back-door privatisation of PSUs: Karat

The Centre was favouring "back-door privatisation" by reducing its stake in public sector units, CPI(M) leader Prakash Karat said on Tuesday.

Updated on: Nov 17, 2009, 22:26:49 IST

PTI | By HT Correspondent, Hyderabad

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The Centre was favouring "back-door privatisation" by reducing its stake in public sector units, CPI(M) leader Prakash Karat said on Tuesday.

Karat, who was in city to participate in CPI(M)'s state-level meeting, said the fiscal deficit of government was very high. "In the name of spending on social sector programmes, the UPA government wants to sell shares of PSUs (but the proceeds of) which will be used to meet the fiscal deficit," he said.

"Besides, the government is also saying it will reduce its stake in PSUs to 51 per cent, which finally would lead towards holding only minority stake. The path chosen is to go towards privatisation," Karat asserted.

The Left Parties have already come out strongly against this move. "We will support the PSU employees and all the trade unions in their struggle against disinvestment and privatisation," the CPI(M) general secretary said.

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