The DMK?s philosophy of ?no disinvestment in PSUs? has been toned down to ?no disinvestment in profit-making PSUs?. This will still take the Tamil Nadu-based Neyveli Lignite Corporation Ltd (NLC) off the disinvestment list, or so the DMK will hope. The DMK wants the UPA government to remain committed to an assurance made in 2005 (to the Left parties) that it will not divest stake in the Navaratnas or Miniratnas. India?s arduous journey to disinvestment in PSUs, began long ago in the 1990s. Interestingly, a 6.5% stake in NLC was sold at the time before a general understanding among political parties not to disinvest in the Navartanas or miniratnas.
The DMK?s opposition to disinvestment in profit-making PSUs is for two reasons. One, the government should not dispose of its stake in an organisation which is already generating money for development works and the private sector should not be allowed to share this profit that should go to the welfare of the people.
The second reason is welfare of the employees. DMK leaders believe that workers would not be safe in a fully or partly privatised company. They would, the DMK believes, be alienated from the organisation which they had built up with dedicated hard work.
This is the real argument behind protesting disinvestment in NLC where most of the 18,000 workers are members of DMK?s Labour Progressive Front (LPF).
Hence, very strong opposition to disinvestment from its own cadres is very certain. Any sign of DMK?s tacit support for disinvestment will erode its popular base considerably and it might even be used against the party in the assembly elections due in 2011.
Citing these two reasons the DMK had threatened to quit the UPA in 2006 when the decision to disinvest NLC was pushed to the brim and Prime Minister Manmohan Singh dropped disinvestment plans altogether.
The DMK will, of course, argue that its opposition to disinvestment in profit-making PSUs is not confined to Tamil Nadu. For the party, this is its national policy, irrespective of the coalition in power. The present mood in the party is to continue along this line.
joseph.vackayil@expressindia.com
