angeldemon_007
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Strongly opposing the decision of the government to offload 10 per cent of its shares in Hindustan Aeronautics Limited (HAL), the Communist Party of India (Marxist) on Monday demanded its reversal and a roll-back of the policy of privatisation.
Emphasising that the move was taken under pressure from the corporate sector, the party Polit Bureau said in a statement that the move to disinvest shares in HAL could well be a precursor to deeper inroads by Indian corporates or even foreign defence majors at a later time.
It said the government had already opened up defence manufacturing to the private sector with up to 100 per cent Indian equity and 26 per cent foreign investment, with formal proposals doing the rounds to increase Foreign Direct Investment limit to 49 per cent. It is clear the government is succumbing to pressure from corporates, who are only looking for substantial and assured profits from a larger share of India's burgeoning expenditure on defence acquisitions, the statement said.
It said HAL would now become the third defence public sector undertaking in which the State had offloaded stake, after Bharat Electronics Limited (BEL) and Bharat Earth Movers Limited (BEML).
HAL is not only much larger it is also more strategic, being the only aircraft manufacturer in the defence sector and the largest in Asia, it said adding that the excuse advanced by government that HLA needed funds for modernisation was untenable.
With orders having increased by over Rs. 8,500 crore and huge contracts in the pipeline, including through 30 per cent offsets of several large defence purchase orders, it said HAL had numerous other options for raising funds.
Besides demanding reversal of the decision on HAL, the CPI(M) also demanded a roll back of the policy of privatisation of the defence industry and opening it up to foreign participation. These measures will lead to dismantling of India's hard-won technological self-reliance, besides endangering national security.
The Hindu : News / National :
Emphasising that the move was taken under pressure from the corporate sector, the party Polit Bureau said in a statement that the move to disinvest shares in HAL could well be a precursor to deeper inroads by Indian corporates or even foreign defence majors at a later time.
It said the government had already opened up defence manufacturing to the private sector with up to 100 per cent Indian equity and 26 per cent foreign investment, with formal proposals doing the rounds to increase Foreign Direct Investment limit to 49 per cent. It is clear the government is succumbing to pressure from corporates, who are only looking for substantial and assured profits from a larger share of India's burgeoning expenditure on defence acquisitions, the statement said.
It said HAL would now become the third defence public sector undertaking in which the State had offloaded stake, after Bharat Electronics Limited (BEL) and Bharat Earth Movers Limited (BEML).
HAL is not only much larger it is also more strategic, being the only aircraft manufacturer in the defence sector and the largest in Asia, it said adding that the excuse advanced by government that HLA needed funds for modernisation was untenable.
With orders having increased by over Rs. 8,500 crore and huge contracts in the pipeline, including through 30 per cent offsets of several large defence purchase orders, it said HAL had numerous other options for raising funds.
Besides demanding reversal of the decision on HAL, the CPI(M) also demanded a roll back of the policy of privatisation of the defence industry and opening it up to foreign participation. These measures will lead to dismantling of India's hard-won technological self-reliance, besides endangering national security.
The Hindu : News / National :
