Plenty has been written about the Congress?s Dravida Munnethra Kazagham (DMK) dilemma. A dilemma that cropped up despite the Congress?s 206 Lok Sabha seats and the party increasing its vote share in Tamil Nadu; the share has gone up by 0.6%. As the Congress prepares to govern with DMK ministers again, most worries are focused on sectors like roads and telecom. One may be spared an old DMK hand, and one may not be.

But there?s little discussion about the fact that DMK in the last UPA took its most intransigent stand on disinvestment. And some disinvestment is a must for this UPA, whenever the Congress finds it politically convenient to start a PSU share sale programme.

The DMK staunchly opposed Neyveli Lignite?s IPO in 2006. Karunanidhi had issued a fatwa that the Congress had to humiliatingly swallow. It was the Neyveli shock that killed all disinvestment prospects during UPA I?s regime. Had the Neyveli IPO gone through, and with two and a half years still left in its term, the Congress could have attempted a few more minority stake sale during UPA I?s five-year term.

True, the Left would have opposed any disinvestment. But had the DMK played ball, Manmohan Singh may have had more leeway in negotiation with the Left. It also should be remembered that the DMK?s opposition to Neveli was brutally abrupt. The party simply told the Congress to drop the plan or else face the consequences.

Given that half a dozen PSUs are ready with 5%-10% share sale plans to raise capital, given that Pranab Mukherje has acknowledged the deficit constraint, and given that the PM?s ultimate goal is to list all profitable PSUs to improve their corporate governance and valuations, DMK?s stand will be crucial. Will they mellow down? Will they allow a Neyveli IPO? If they block Neyveli, what will be the political implications of going ahead with other IPOs? In UPA II someone, perhaps Mamata Banerjee, may pick a PSU to defend.

All these are crucial questions. Maybe the PM should make a DMK MP the minister of state for disinvestment, and thus align conflicting interests.

vikas.dhoot@expressindia.com