The Centre has decided to put on hold all decisions and proposals for offloading stake in public sector undertakings
NEW DELHI: Prime Minister Manmohan Singh signalled a go-slow on reforms on Thursday with an order to put all disinvestment proposals on hold “till further review”.
The catalyst for the order was the DMK’s threat to pull out of the UPA in protest against the government’s decision to divest 10 per cent of its equity in Neyveli Lignite Corp. But that Singh chose to put all disinvestment on hold is a reflection of the mounting sentiment against reforms within the UPA, including the Congress.
DNA had reported two days ago that the Congress wants the government to put all big-ticket reforms on the slow burner in the run-up to the next general election. Today, the realist in Singh bowed to political compulsions and shelved his reformer instincts.
The DMK threat came after the Centre ignored three letters to the PM from Tamil Nadu CM M Karunanidhi asking for a review of the Neyveli disinvestment. The last letter was written earlier this week.
A government source said Karunanidhi was upset at not being consulted on the move though it would have affected 30,000 employees of the Tamil Nadu-based PSU.
Finally, on Thursday, the DMK appealed to the UPA’s highest court, Sonia Gandhi. Communications Minister Dayanidhi Maran met Gandhi in the morning with a letter from Karunanidhi explaining that he would have no option but to rethink his participation in the UPA government if the Neyveli decision was not rolled back.
Gandhi spoke to Singh who telephoned Karunanidhi and assured him that not only Neyveli but all disinvestment decisions would be put on hold.
The announcement engendered widespread relief within the UPA and the Left. The latter sees it as a political victory. The Left can now be expected to push its agenda harder. Meanwhile, employees of Neyveli Lignite ended their three-day-old strike late at night.
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