Poll-wary PM goes slow on divestment

NEW DELHI: Yet another sign of the government being in poll mode is here: Prime Minister AB Vajpayee on Tuesday signalled that the government would not engage in fresh disinvestment adventures during the remainder of its term.
Mr Vajpayee, belying earlier indications, today shelved the Nalco disinvestment plan. Addressing a gathering at Bhubaneshwar, he said that the Nalco disinvestment was being put off, according to reports.
This marks an about-turn since the government had earlier declared its desire to press ahead with Nalco’s disinvestment, despite protests which took an ugly turn, leading to manhandling of valuers who had gone to inspect the Nalco plant.
Both the BJP as well as its coalition partner, CM Naveen Patnaik’s Biju Janata Dal, were resisting the disinvestment for the fear of being upstaged by the Congress-led Opposition which had threatened a massive agitation against the Nalco sale.
To the disinvestment ministry, the Prime Minister’s announcement was a clear signal to pause. To political circles, it was yet another indication of the Prime Minister gearing up for polls, which in all probability may be held in February, subject to a good performance of the BJP in the coming state elections. The forecasts of a good monsoon and the prognosis of an economic recovery are seen as other factors that may entice the Prime Minister to order early polls.
The Prime Minister’s Bhubaneshwar visit provided another sign of political pressures taking their toll on the pro-reforms intentions of the government. Mr Vajpayee committed more funds to the Paradip Oil Refinery project. The announcement defied the petroleum ministry’s doubts about the project’s feasibility. The petroleum ministry had argued for suspension of work on the project in a presentation made to the PM in the presence of Mr Patnaik.
The BJD-BJP coalition in Orissa has been in bad shape because of mutual squabbling as well as dissension in their respective ranks. As chief minister Patnaik struggles to grasp the mundane realities of politics, the Congress leadership has been drawing up plans to improve its tally in the state where it could manage just one seat last time. Today’s announcement shows the determination of the ruling coalition to restrict the opponent’s space.
The BJP leadership disclaimer that it has no intention to bring the polls forward has not stopped it from asking workers to prepare for an early poll. The Congress has also not been taken in by the denials either with Ms Sonia Gandhi flaunting her own preparedness for an early battle at the recently-concluded Shimla conclave.