In its inputs to the Congress party for working out a Common Minimum Programme, the Communist Party of India (Marxist) and CPI has proposed that profit-making PSUs should be out of the sell-off list and the new government should wind up the disinvestment ministry.

The Divestment Development

CPI(M) General Secretary Harkishen Singh Surjeet said, "We cannot afford it (NDA's disinvestment programme). We oppose disinvestment of profit-making PSUs. This disinvestment policy has seriously harmed the country.

The present mandate is a reflection of the people's verdict on the wrong economic policies of the NDA government. This policy has to be changed." CPI General Secretary AB Bardhan too said he has demanded an end to the plans of disinvestment of government equity in Oil and Natural Gas Corp , Bharat Petroleum Corp and Hindustan Petroleum Corp.

The Left parties have also proposed that the new government should first try to revive the loss making PSUs. "Those companies which can't be revived may be closed down, but, there should be a mechanism to ensure that the interests of workers are protected and they do not suffer due to the closure," Bardhan said.

On labour reforms, CPI(M) leaders indicated that they may not seek a reversal of the decisions but will press for rejecting the report of the Second Labour Commission which had proposed simpler hire and fire rules.

"There can be no reforms without safety nets and we do not want the contract labour regime to be expanded further," a senior party leader said.

The CPI(M) has also sought that the new government maintain interest rates on small savings at their present level to ensure that pensioners did not lose income and also maintain a high level of savings and consequent investment in economic activity.

The Left parties and the Congress are in favour of increasing the rate of investment to step up economic activity, particularly in the manufacturing sector.

On foreign investment, the Left parties want to channelise it into priority sectors and are opposed to complete liberalisation.

"Foreign investment is fine as long as there is infusion of fresh capital and technology and foreign companies do not take over domestic entities," CPI(M)'s Sitaram Yechury said.

Bardhan also sought to do away with the European Union's demand for a mulitlateral framework on investment at the World Trade Organisation.

Though Bardhan opposed the entry of private players in the Indian insurance business, he said that the decision could not be reversed now since millions of policyholders would suffer.

The Left parties are also seeking an extension of the Public Distribution System and have proposed that foodgrains be made available to the vast majority of population at lower prices. They, however, intend to move away from the targeted PDS system.

The Communists are also not opposed to the idea of introduction of a value added tax regime but may seek a review of the structure in which it is implemented.

They also propose to accord top priority to fiscal discipline though leaders maintain that the pro-poor policies do not translate into fiscal indiscipline.

They also said that states would be given greater autonomy in their functioning though they were responsible for a part of the fiscal mess.

On tax rates, Left leaders said that the tax rates and the highest tax slab would be decided in due course but the tax net should be expanded to cover more sectors.