Government should not take divestment path: CPI-M

Kolkata, Nov 5 : The Communist Party of India-Marxist (CPI-M) Thursday demanded that the centre stay away from divestment of public sector companies as it would impact the country's economy.

"I don't think the centre should take this divestment initiative as it would impact the country's economic scenario, especially during this crucial juncture. This initiative would only help a section of people who will enjoy the benefit," CPI-M West Bengal secretary Biman Bose told a press conference, when asked about his reaction to Union Home Minister P. Chidambaram's statement on divestment.

Chidambaram Thursday backed divestment, saying all listed Central Public Sector Enterprises (CPSE) have to divest 10 percent equity to the public.

The home minister also announced that the government would list all unlisted public sector units (PSU) which do not have any accumulated losses, have positive networth and make profits.

"Our economy was not that affected in the global meltdown as we had our PSUs and we could recover from that even during such crisis situation," Bose said.

"But we should not invite such a situation in the future. So I don't think this kind of step to back divestment is at all advisable for the central government," Bose said.