World | India
Neyveli shares are not to be sold Manmohan Singh
Prime Minister Manmohan Singh yesterday announced his decision to put on hold all proposals to sell government equity in state-run companies following protests by key allies including the DMK and the Left parties.
- IANS
- Published: 00:00 July 7, 2006
New Delhi/Chennai: Prime Minister Manmohan Singh yesterday announced his decision to put on hold all proposals to sell government equity in state-run companies following protests by key allies including the DMK and the Left parties.
The decision to hold back the sale of government equity in Neyveli Lignite Corp (NLC) was personally conveyed by Singh over the telephone to Tamil Nadu Chief Minister and DMK chief M. Karunanidhi, who had threatened to quit the United Progressive Alliance (UPA) government over the issue, officials said.
Last week's meeting of the union cabinet, chaired by Manmohan Singh, had decided to sell 10 per cent equity in two state-run enterprises, the coal mining and energy major NLC and the National Aluminium Company (NALCO).
"When the central government is not ready to accept the demands of workers, DMK is wondering whether to continue in the union government and be a party to its decision," Karunanidhi told reporters in Chennai.
"I have instructed DMK's central ministers to inform this to the prime minister."
DMK has 16 MPs in the Lok Sabha, the lower house, and its ally PMK has six. Without their support, the Congress party-led UPA government will fall short of majority.
According to the sources, Manmohan Singh convened an emergency meeting in the morning, just before a cabinet meeting, that was attended, among others, by Finance Minister P. Chidambaram, Defence Minister Pranab Mukherjee and Communications Minister Dayanidhi Maran, who belongs to DMK.
Maran is understood to have conveyed the strong reservation his uncle Karunanidhi had on the issue and asked for a review of the decision.
Manmohan Singh then spoke to the Tamil Nadu chief minister and conveyed the government's U-turn.
The Communist Party of India-Marxist (CPI-M)-led Left Front, which has been vehemently opposing the selling of government shares in profit-making state-run companies, welcomed the decision.
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