The Left has already started flexing its muscles on key economic issues like divestment and oil prices, which may force the Congress-led government to put them in the backburner.

"We are against raising the prices of petroleum products. We know that crude accounts for only 20 per cent of oil product prices. The balance 80 per cent is oil companies' margin. Surely, there is ample scope to absorb high international crude prices in the prevailing retail prices in India," a senior Left leader told Business Standard on Friday.

He pointed out that this was evident from the fact that the oil companies were registering abnormally high profits every year since the dismantling of administered pricing mechanism in the oil sector in April 2002.

The oil marketing companies have been arguing that they were taking a Rs 120 crore (Rs 1.2 billion) hit every month since January 1, 2004, when petrol and diesel prices were last revised.

Both the CPI and the CPI(M) said that they wanted the divestment ministry to be wound up. AB Bardhan, general secretary, CPI said, "There is no need for a divestment ministry. Profit-making public sector undertakings should not be sold. So, there should not be any sale of HPCL, BPCL, IOC and ONGC."

Even amongst loss-making PSUs, there were some, which could be turned around and rehabilitated by capital infusion, he added.

"As far as economic reforms are concerned, we have serious differences with the Congress, which is quite natural. The Congress is a bourgeois party and we will fight it out with them if reform measures announced by the new government were not in the interests of the people, workers and farmers. We will take our agitation to the streets," said Bardhan.

The CPI, however, said reforms that have already taken place would not be rolled back. For instance, in areas like insurance, private Indian and foreign companies have already set shop in the country.

"So, we cannot ask them pack their bags. However, in certain other sectors like power, though the Electricity Act is in place, we can seek an amendment," Bardhan said.

The CPI also sought to distinguish between foreign direct investment and India's position on investment policy under the multilateral framework.