Rollback decision to allow PSUs invest in MFs: CPI
The CPI demands immediate reversal of the Centre's decision to allow select navratna and mini-ratna PSUs to invest 30 per cent of suplus cash in equity MF.
By PTI |
KOLKATA: The Communist Party of India, a key supporter of the Central government, on Friday demanded immediate reversal of the Centre's decision to allow select navratna and mini-ratna PSUs to invest 30 per cent of suplus cash in equity mutual fund.
"The CPI opposes the decision tooth and nail because resources of a poor country like India is being diverted for non-productive speculation rather than investing for social infrastructure, including power generation, expansion of irrigation facilities, education and health," CPI MP Gurudas Dasgupta told the media here.
The Union Government had yesterday allowed navratna and mini-ratna public sector companies to invest up to 30 per cent of their surplus cash in mutual funds -- a move that could see a flow of more than Rs 60,000 crore in the capital markets.
Dasgupta said the move would lead to foreign institutional investors making windfall profits.
"According to my information, the surplus generated in navratna and min-iratna PSUs amount to Rs 2,39,535 crore. And, according to the government decision, out of the surplus, nearly Rs 60,000 crore will be available for such market manipulations."
"The CPI opposes the decision tooth and nail because resources of a poor country like India is being diverted for non-productive speculation rather than investing for social infrastructure, including power generation, expansion of irrigation facilities, education and health," CPI MP Gurudas Dasgupta told the media here.
The Union Government had yesterday allowed navratna and mini-ratna public sector companies to invest up to 30 per cent of their surplus cash in mutual funds -- a move that could see a flow of more than Rs 60,000 crore in the capital markets.
Dasgupta said the move would lead to foreign institutional investors making windfall profits.
"According to my information, the surplus generated in navratna and min-iratna PSUs amount to Rs 2,39,535 crore. And, according to the government decision, out of the surplus, nearly Rs 60,000 crore will be available for such market manipulations."
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