Wednesday, July 3, 2013

15.Prime Minister Vajpayee and the CTBT



Note: My videos on politics and English Grammar can be seen in the  You Tube.





15

THE CPMPREHENSIVE TEST BAN TREATY
 ( THE CTBT)

     The National Democratic Alliance (NDA) was sworn in on 13 October 1999 for the third term. In continuation of the May 1998 nuclear blasts by India, the new government spelt out three conditions to sign the Comprehensive Test Ban Treaty (CTBT). The conditions were:
1.              Successful conclusion of the nuclear negotiations with the USA and other great powers.
2.              India would not join the treaty in a coercive atmosphere.
3.              The Indian decision on the CTBT would be subjected to the broadest possible national consensus on the treaty.
    In order to evolve a national consensus, the government sounded the views of the opposition parties.  
   The opposition parties felt that the developed countries might violate the treaty on the sly.
   They wanted to know whether India had the access to technical means to know whether a CTBT subscriber had cheated or not.
  They emphasised that India should not end up on the losing side in the “bargain”  ( Refer Singh- Talbott talks under Indo-US relations.).
  They also wanted India to work for the total elimination of nuclear weapons from the world.
   The Left parties were against signing the CTBT in a hurry.
   Many parties wanted a debate in the Parliament in this matter.
   Dr. A.P.J. Abdul Kalam, Senior Scientific Adviser to the Government of India, pointed out that when India proposed the CTBT in the 1950s as a step towards total nuclear disarmament, the USA was totally against it. He added that the CTBT would serve the non proliferation agenda of the Nuclear Weapons States (NWS) with total disregard to either the original nuclear disarmament goals or to the legitimate security compulsions of India. Besides, he said that the CTBT had lost its relevance technologically.  
   Dr. M.R. Srinivasan, former Chairman of the Atomic Energy Commission, also opposed the India signing the CTBT. According to him:
1.               India would still need some more tests of explosive kind.
2.               The USA would supply China and France with weapon test information to improve the safety of their weapons. But the USA had been denying the same to India.  
3.               The USA had violated bilateral agreements to supply high technology materials to India on the pretext of a subsequent legislation.
4.               The USA, China and Pakistan were not prepared to give “no first use” commitment to India. It is not easy for India to build a second strike capability.
    Considering all relevant facts, the Prime Minister – in an interview to the leading Russian daily, Izvestia, said that the rejection of the treaty by the US Senate had an impact on the domestic opinion in India. He wanted all countries whose accession was essential for the coming into force of the CTBT to do so without any pre-condition. He requested the USA not to cite India for not ratifying the treaty. He, further, rejected the Non Proliferation Treaty (NPT) as a discriminating and flawed treaty and ruled out the possibility of joining the NPT regime as a non-nuclear weapon power.
    Now, Dr. P.K. Iyengar, former Chairman of Atomic Energy Commission said that India must test more n-bombs before signing the treaty.
    Thanks to the nuclear blasts, the World Bank (WB) had withheld loans amounting to 1.5 billion. The Asian Development Bank (ADB) had followed suit. The G- countries (The USA, UK, France, Germany, Italy, Japan, Canada and Russia) had also imposed certain restrictions with reference to the loans.
    The US Assistant Secretary of State, Karl Inderfurth, said that the USA would work for such restrictions to force India to sign the CTBT. He said this immediately after the visit of Mr. Bill Clinton to India (7-5-2000) To this the External Affairs Minister of India, Mr. Singh, that India would not sign the CTBT in the near future.
     
    Prime Minister Vajpayee paid a visit to Portugal to attend the first ever Summit with the European Union. At that time, he said that in an increasingly independent world, a plural security order alone can deal with the challenges of the new era. He told the top leadership of the European Union, that India believed in effective multi-polarity and wanted them to look at the nuclear capability of India through that angle. He added that only multi-polarity would give strategic space and autonomy in decision making. 
     With regard to the question of signing the CTBT, the Prime Minister said that efforts were on to evolve a broad political consensus on the issue and expressed the hope that he would succeed in this matter. He hinted that the Parliament would consider the matter very soon. However, there was not much discussion on the CTBT in the Parliament or outside.
    During the Millenium Summit of the UN, Prime Minister Vajpayee revealed in clear terms, the Indian stand on the CTBT. He said in a written statement that the Section 14 of the CTBT permitted certain countries to keep atomic weapons. As India had no belief in that Section, he said that India would consider the question of signing the CTBT only when that Section was removed. However, India would participate in negotiations on fissile material ban with a view to form a non-discriminatory treaty.
    During his visit to the USA, Prime Minister Vajpayee had a detailed discussion on the CTBT with President Bill Clinton. There was a conscious effort to understand each other and not to impose anything.
     In the matter of nuclear non-proliferation also each side agreed to take decisions in the Supreme national interest.  

      

Sunday, June 30, 2013

14 Prime Minister Vajpayee -Style of Functioning

14


STYLE OF FUNCTIONING

     Mrs. Chinnapillai, a 56 year old Dalit woman from the Tamil Nadu state, was selected for the Sakthi Puraskar Award for the year 1999. The award was for her contribution to rural women’s empowerment.
        The government asked her to go to Delhi to receive the award from Prime Minister A.B. Vajpayee.
       Accordingly, she went to Delhi.
      As a mark of gratitude, she touched the feet of the Prime Minister before receiving the award. He reciprocated it by touching her feet.
    The above act of the Prime Minister not only moved the mind of Mrs. Chinnapillai but also the people all over India.

      On his 76th birth day, Prime Minister A.B. Vajpayee gifted to the nation the Pram Mantri Gram Sadak Yojana and the Antoyodaya Anna Yojana. The former scheme was to give road connectivity to one lakh villages and the latter was to give food grains at Re. 2 per kg for wheat and Re.3 per kg for rice for 50 million poor people.
     Former Prime Minister Mr. H. D. Deve Gowda immediately said that he had formulated a scheme to give rice and wheat at subsidized prices to 36 crore people but never clubbed it with his birth day.

  

      The militant people attacked the Parliament House on the 13th December 2001. All opposition parties extended their full co-operation to the government. The Prime Minister, in turn, remained in constant touch with the leaders of the opposition parties and convened an all-party meeting on December 30, 2001.
     It was followed by the meeting of former prime ministers. All the predecessors of Prime Minister Vajpayee – Mr. V.P. Singh, Mr. Chandra Shekar, Mr. P. V. Narasimha Rao, Mr. H.D. Deve Gowda and I.K. Gujral- attended the meeting. Former President Mr. R. Venkataraman also attended the meeting as a special invitee.
       Mr. H. D. Deve Gowda and Mr. Chandra Shekhar cautioned the government against beating the war drums - in the pretext of the Parliament attack - a bit too loudly.

      On 10 February 2002, Prime Minister Vajpayee said that there was a conspiracy to disintegrate the country. A few days earlier he had said that an emergency like situation was prevailing in India.
      On 19 February 2002, while addressing an election meeting, Prime Minister Vajpayee said that the BJP would win the election to the Utter Pradesh State Assembly even without the help from the Muslims. His statement was condemned by many political parties.
     The Samajwadi Party (SP) demanded the President of India to dismiss the Prime Minister for his above statement. In a letter it wanted the Election Commission of India (ECI) to consider the question of disenfranchisement of the Prime Minister. 
     The Congress Party described the statement as “highly objectionable but fought with dangerous consequences”.
      The CPI (M) said that the statement revealed his communal bias.
     Former Prime Minister Mr. V. P. Singh said that his remarks were in “bad taste” and most unbecoming of the Prime Minister.

    The Union Government abolished the Banking Service Recruitment Board in 2002.

      A Parliamentary Committee on “Welfare of the Scheduled Castes and Scheduled Tribes” wanted the government to provide quota for these communities and women in the higher judiciary. The Committee observed that out of about 490 High Court Judges, only about 20 were from the SC/STs and only one Supreme Court judge belonged to the SC in 2002. The Committee felt that the provision of Article 15(4) as interpreted by the Supreme Court should be applied to the appointment of Supreme Court and High Court judges without delay.

         Quickly rejecting the demand, the Government said that the appointment of judges to the High Courts and the Supreme Court was governed by Article 124 and 217 of the Constitution of India which do not provide for reservation. The government felt that the act of amending the provisions of the Constitution to provide reservation would send wrong signals to the judiciary.  

       Prime Minister Vajpayee, after visiting the relief camps of the victims of the Gugarat riot, admonished Mr. Narendra Modi, Chief Minister of Gujarat and reminded him of his “Raj Dharma”.
    Later, during an election rally in Goa, he put the blame on Muslims.
    This prompted a former Chief Justice of the Supreme Court – Justice Ahmadi - to say that the changing pattern of statements added insult to injury to the Muslim Community. Addressing a national symposium on “Gujarat carnage & media” at Bangalore on August 10, 2002, he said that he did not understand which sermon he should take seriously from the Prime Minister of India.
     On that day, Mr. H.D. Deve Gowda described the violence in Gujarat as state sponsored terrorism.


  

Saturday, June 1, 2013

To the publishers

TO
 THE INTERNATIONAL PUBLISHERS

Other blogs are:
1.    www. vajpayee.blogspot.com


3.www.primeministerdevegowda.blogspot.com

4.www.temples-and-churches.blogspot.com

5.www.primeministermanmohansingh.blogspot.com


7.www.sabarimuthu-vellicode.blogspot.com

8.www.theconfidants-india.blogspot.com

9.www.effectiveinorganicchemistry.blogspot.com

     International publishers – interested in publishing any blogs without any co-contribution from my side - are requested to contact me in the following address.

V. Sabarimuthu
26-3 Thattamkonam
Vellicode
Mulagumoodu P.O.
INDIA
PIN:629167
Phone: 04651275520
Mobile: 9486214851


Wednesday, May 8, 2013

3. The Sale of the VSNL , IPCL and Some Other PSUs.

3



THE GENESIS


            Mr. Vajpayee, Prime Minister of India, had conducted a series of meetings before announcing his decision to use public money for public investments.  However, this decision did not last long.
 
 A powerful syndicate began to work in private interest. This syndicate had stranglehold over the entire system.  A sinister privilege began to play in private interest either presumably due to some pressure from within or Mr. A.B. Vajpayee had taken a decision to work in selfish interest and private interest.
 Thus - within two days - the Economic Advisory Council was convened presumably at the instance of the industrialists.
Mr. Yashwant Sinha, Minister for Finance, Dr. Kirit Parekh, Dr. Amaresh Bagchi, Mr. Jagdish Shettigar, Dr. Rakesh Mohan, Dr. Vaidyanathan, Dr. Shankar Acharya, Dr. Ashok Lahiri and Dr.R.K.Pachauri, attended the meeting. The special invitees included Mr. K.C.Pant, Mr. Murasoli Maran, Mr. Suresh Prabu, Mr. Arun Shourie, Mr. Agit Singh, Mr. Arun Jaitly, Mr. B.C. Khanduri, Mr. N.K.Singh and the Governor of the RBI, Mr. Vimal Jalan.
The industrialists succeeded in torpedoing an excellent opportunity to develop India by leap and bounds through public investments.
 Thus, Mr.Yashwant Sinha opposed a massive public investment programme to reverse the economic slowdown.
Mr. A.B. Vajpayee was not allowed to talk.
A sea change in the policy occurred as the Government gave in to pressure and resumed privatization.

Mr. A.B. Vajpayee virtually lost full control over the system and began to play a new role that too reluctantly. Thus, he - instead of watching and supervising the administration - allowed the above syndicate to determine the priorities of the land.
Within a few days, the Government sold Computer Maintenance Corporation (CMC), which had been showing a growth rate of 27% in preceding three years, to Tata Sons for Re. 207 crore - a price lower than the market price.
 Himachal Futuristic Communication Ltd  brought the Hindustan Teleprinters Ltd (HTL)  for Re. 152 crore.
 Mr. C.R.L. Narasimhan of The Hindu and other newspapers commended the privatization policy of the Government.
Mr.Harkishan Singh Surjeet,  General Secretary of the Communist Party of India (CPI-M), however, pointed out that “Modern Foods” which was worth nearly Re. 2,200 crore was sold to Hindustan Lever for a paltry Re.150 crore and the BALCO was thrown away for 10% of its estimated value of Re. 5,500 crore.
While selling the PSUs, Prime Minister, for joke, said that the Government was opposed to privatization of profits and socialization of pains.
Now he wanted to sell the big PSUs to some big industrialists. At the same time, public money also must be given to them through the banks because they were not ready to wait.
Further, in order to enable the banks to give the money to private parties, the Government would have to pump in public money into the banks.
He could not reconcile all these with his patriotic principles. Therefore, he requested Mr. L.K. Advani, Home Minister, to do the job during his foreign tour.
         Thus, in the second week of November, Mr. Vajpayee left New Delhi for a ten-day tour of Russia and the USA. The Cabinet Committee on Disinvestments (CCD) chaired Mr. L.K. Advani, Home Minister, decided to sell 51 percent equity in Indian Petrochemicals Ltd (IPCL) including 26 percent to a strategic partner in 90 days.
At the same time the Bank of India (BoI) gave an advance of Re. 845 crore to Tata Finance.
 The crucial question before the present writer was whether Tata took the money for investment purposes or to buy the PSUs. The present writer had been waiting patiently to know this.
After a few months, the IPCL was sold to Reliance Industries Ltd (RIL) and the VSNL to Tata. Each one was worth Re. more than one lakh crore.
The sale of the IPCL was unconstitutional because it violated a guideline for privatization. The sale of the VSNL was unconstitutional because public money was used to buy it.
 This was the genesis.  Mr. L.K. Advani  did not explain his role to the people.
         In the meantime, the US Federal Reserve imposed a hefty $7.5 million fine on the State Bank of India for collecting money violating several local laws. 
The seventh Inter State Council (ISC), was convened as soon as Mr. Vajpayee returned from the USA. In the meeting, Mr. Chandra Babu Naidu, Chief Minister of Andra Pradesh state, asserted that Re. 9 lakhs could be collected from the service tax alone.
  Further, the meeting accepted the demand of the Chief Ministers to bring taxation matters under concurrent list. It was a step beyond the Sarcaria Commission recommendation.
Now the Reserve Bank of India (RBI) allowed the banks to give 5% of their deposits as credit to brokers. It was an unconstitutional decision.
The New Indian Express’ on 17 November 2001 said that Government would have to pump in 10,000/-crore to keep the Indian banks healthy and stable and wanted to raise capital directly by diluting its holding.
The above decision was to enable the banks to lend money for buying the PSUs. Thus, the public money that might have been used for public investments also had to be handed over to the banks.
 Mr. Arun Shourie, Minister for Disinvestments, now said that the processes to sell the VSNL and the Indo-Burma Petroleum (IBP) were on course. He added that the old stories would not be repeated and the PSUs would be sold as planned.
The Minister for Finance also said that there would be no holding back of reforms (privatization).
Now, the Ministry of Communication asked the BSNL to re-negotiate prices for buying the equipments for its countrywide cell phone network as the winning companies had hiked prices by forming a Cartel. The new Indian Express on 23 November 2001 described this as a trick by the Ministry. The companies involved were Motorola, Lucant and Ericsson.
         Due to the above developments, one more letter (letter No. 2) was sent to Mr. A.B. Vajpayee and the important Chief Ministers on 20 November 2001.
      In this letter, the present writer chose not to level any charge against anyone in power. The facts were also not mentioned, lest the system would hide everything.
    The letter follows.
           

From
          V.Sabarimuthu,
          Thattankonam,
              Vellicode,
               Mulagumoodu, P.O.629167.
To
          Mr. A.B. Vajpayee
Hon’ble Prime Minister of India,
          Parliament House,
          New Delhi.

 Your Excellency,

                   While our toiling hands in the form of NRIs flood the banks with hundreds of crore everyday, the Government is selling Public Sector Undertakings, (PSUs), the value of which cannot be measured in terms of money. The PSUs belong to all people all over India and giving them to a few people of one or two states under any principle is not only painful but also it would lead to lopsided development leaving the common man with no firm soil to stand. In fact, our IAS officers are capable of running them more efficiently and more profitably than others provided they are split into smaller units. Even in England, the privatization of railways ended in fiasco. Even if the private industry becomes sick, the Government will have bail them out. As such, we must save our PSUs and maintain the diversity in industry. Further, in order to buy one PSU after another with bank funds, public funds or ill-gotten funds, the industrialists refrain from starting any new industries and it is one of the reasons for the recession. Above all, the mind and tongue of our people are governed by ignorance mainly due to our print media and it is our paramount duty to preserve the PSUs with perseverance for the benefit of posterity.

          In the light of the above and in continuation of my letter dated 1-6-2001 most kindly consider the question of:

  1.     Abandoning the policy of privatization to encourage the corporate houses to start new ventures.

2.               Banning all financial institutions (FIs) from collecting more than 10% interest on any kind of loan and rescheduling all existing loans to save the people from the debt trap.

3.               Making it mandatory for all banks and FIs to report to the Chief Minister any transaction over Re. one crore and to get the clearance of the State Cabinet for transaction over ten crore as in the USA.
                                                                                     


4.               Directing all banks and all FIs to disburse 60% of the credit to the rural areas to uplift the rural masses.

5.               Annulling the recent decision of the Governor, RBI, to give 5% (nearly Re. 25,000 crore) of the credit to brokers because giving any money to about 100 broker boys of one or two states is anti constitutional, as it would affect the interest of all people all over India.

6.               Permitting the major State Governments to collect at least Re.10,000 crore each from all kinds of service charges in this year alone.

7.               Directing all insurance companies other than the LIC to remit 30% of the premium amount to the State Governments.

8.               Giving an interim relief of 30% to all employees and Re.500 per month to all non- pensioners above 60 years in order to control recession.

9.               Granting a pension to the NRIs proportionate to the amount sent by them through banks and paying a lump sum to those who die in harness to control hawala transactions and

10.          Asking all Punchayats all over India to construct one auditorium or one hospital each using bank loan as it is a self-sustaining one.

Vellicode,                                                                         Yours faithfully,        
20-11-12001.                                                                 (V.SABARIMUTHU)
          A copy of the above letter was sent to prominent leaders of the political parties also by post. A copy was sent to President of India along with the copy of the first letter.
         
             After the receipt of this letter, Dr. M. Karunanidhi, President of the DMK party, said that his party favoured retention of the PSUs by the Government. He wanted the Government to encourage the Corporate Houses to start new ventures to create new jobs.
             Mr. Mulayam Singh Yadav, again after the receipt of the above letter, requested the Government to preserve the PSUs by infusing more money into them.

          Consistent with the letter, the Government later brought down the lending rates to about 10 per cent.




Sunday, May 5, 2013

3. A Reluctant Man

3



            THE BRAIN BEHIND THE CONSPIRACY


            Mr. Vajpayee, Prime Minister of India, had conducted a series of meetings before announcing his decision to use public money for public investments.  However, this decision did not last long.
  
 A powerful syndicate began to work in private interest. This syndicate had stranglehold over the entire system.  A sinister privilege began to play in private interest either presumably due to some pressure from within or Mr. A.B. Vajpayee, Prime Minister of India, had taken a decision to work in selfish interest and private interest.
 Thus - within two days - the Economic Advisory Council was convened presumably at the instance of the industrialists.
Mr. Yashwant Sinha, Minister for Finance, Dr. Kirit Parekh, Dr. Amaresh Bagchi, Mr. Jagdish Shettigar, Dr. Rakesh Mohan, Dr. Vaidyanathan, Dr. Shankar Acharya, Dr. Ashok Lahiri and Dr.R.K.Pachauri, attended the meeting. The special invitees included Mr. K.C.Pant, Mr. Murasoli Maran, Mr. Suresh Prabu, Mr. Arun Shourie, Mr. Agit Singh, Mr. Arun Jaitly, Mr. B.C. Khanduri, Mr. N.K.Singh and the Governor of the RBI, Mr. Vimal Jalan.
The industrialists succeeded in torpedoing an excellent opportunity to develop India by leap and bounds through public investment.
 Thus, Mr.Yashwant Sinha opposed a massive public investment programme to reverse the economic slowdown.
Mr. A.B. Vajpayee was  not allowed to talk.
A sea change in the policy occurred as the Government gave in to pressure and resumed privatization.

Mr. A.B. Vajpayee virtually lost full control over the system and began to play a new role that too reluctantly. Thus, he, instead of watching and supervising the administration, allowed the above syndicate to determine the priorities of the land.
Within a few days, the Government sold Computer Maintenance Corporation (CMC) which had been showing a growth rate of 27% in preceding three years, to Tata Sons for Re. 207 crore - a price lower than the market price.
Hindustan Teleprinters Ltd (HTL) was sold to Himachal Futuristic Communication Ltd for Re. 152 crore.
 Mr. C.R.L. Narasimhan of The Hindu and other newspapers commended the privatization policy of the Government.
Mr.Harkishan Singh Surjeets,  General Secretary of the Communist Party of India (CPI-M), however, pointed out that “Modern Foods” which was worth nearly 2,200 crore was sold to Hindustan Lever for a paltry Re.150 crore and the BALCO was thrown away for 10% of its estimated value of Re. 5,500 crore.
While selling the PSUs, Prime Minister, for joke, said that the Government was opposed to privatization of profits and socialization of pains.
Now he had to sell the big PSUs. At same time public money also must be given to the industrialists to buy because they were not ready to wait.
Further, in order to enable the banks to give the money to private parties the Government had to pump in public money into the banks.
He could not reconcile all these with his principles. Therefore, he requested Mr. L.K. Advani, Home Minister, to do the job during his foreign tour.
         Thus, in the second week of November, Mr. Vajpayee left New Delhi for a ten-day tour of Russia and the USA. The Cabinet Committee on Disinvestments (CCD) chaired Mr. L.K. Advani, Home Minister, decided to sell 51 percent equity in Indian Petrochemicals Ltd (IPCL) including 26 percent to a strategic partner in 90 days.
At the same time the Bank of India (BoI) gave an advance of Re. 845 crore to Tata Finance.
 The crucial question before the present writer was whether Tata took the money for investment purposes or to buy the PSUs. The present writer had been waiting patiently to know this.
After a few months, the IPCL was sold to Reliance Industries Ltd (RIL) and the VSNL to Tata. Each one was worth Re. more than one lakh crore.
The sale of the IPCL was unconstitutional because it violated a guideline for privatization. The sale of the VSNL was unconstitutional because public money was used to buy it.
 Thus, unless otherwise denied - the developments show -  Mr. L.K. Advani was the brain behind the conspiracy. He did not explain his role to the people.
         In the meantime, the US Federal Reserve imposed a hefty $7.5 million fine on the State Bank of India for collecting money violating several local laws. 
The seventh Inter State Council (ISC), was convened as soon as Mr. Vajpayee returned from the USA. In the meeting, Mr. Chandra Babu Naidu, Chief Minister of Andra Pradesh state, asserted that Re. 9 lakhs could be collected from the service tax alone.
  Further, the meeting accepted the demand of the Chief Ministers to bring taxation matters under concurrent list. It was a step beyond the Sarcaria Commission recommendation.
Now the Reserve Bank of India (RBI) allowed the banks to give 5% of their deposits as credit to brokers. It was an unconstitutional decision.
The New Indian Express’ on 17 November 2001 said that Government would have to pump in 10,000/-crore to keep the Indian banks healthy and stable and wanted to raise capital directly by diluting its holding.
The above decision was to enable the banks to lend money for buying the PSUs. Thus, the public money that might have been used for public investment also had to be handed over to the banks.
 Mr. Arun Shourie, Minister for Disinvestments, now said that the processes to sell the VSNL and the Indo-Burma Petroleum (IBP) were on course. He added that the old stories would not be repeated and the PSUs would be sold as planned.
The Minister for Finance also said that there would be no holding back of reforms (privatization).
Now, the Ministry of Communication asked the BSNL to re-negotiate prices for buying the equipments for its countrywide cell phone network as the winning companies had hiked prices by forming a Cartel. The new Indian Express on 23 November 2001 described this as a trick by the Ministry. The companies involved were Motorola, Lucant and Ericsson.
         Due to the above developments, one more letter (letter No. 2) was sent to Mr. A.B. Vajpayee and the important Chief Ministers on 20 November 2001.
      In this letter, the present writer chose not to level any charge against anyone in power. The facts were also not mentioned, least the system would hide everything.
    The letter follows.
           

From
          V.Sabarimuthu,
          Thattankonam,
              Vellicode,
               Mulagumoodu, P.O.629167.
To
          Mr. A.B. Vajpayee
Hon’ble Prime Minister of India,
          Parliament House,
          New Delhi.

 Your Excellency,

                   While our toiling hands in the form of NRIs flood the banks with hundreds of crore everyday, the Government is selling Public Sector Undertakings, (PSUs), the value of which cannot be measured in terms of money. The PSUs belong to all people all over India and giving them to a few people of one or two states under any principle is not only painful but also it would lead to lopsided development leaving the common man with no firm soil to stand. In fact, our IAS officers are capable of running them more efficiently and more profitably than others provided they are split into smaller units. Even in England, the privatization of railways ended in fiasco. Even if the private industry becomes sick, the Government will have bail them out. As such, we must save our PSUs and maintain the diversity in industry. Further, in order to buy one PSU after another with bank funds, public funds or ill-gotten funds, the industrialists refrain from starting any new industries and it is one of the reasons for the recession. Above all, the mind and tongue of our people are governed by ignorance mainly due to our print media and it is our paramount duty to preserve the PSUs with perseverance for the benefit of posterity.

          In the light of the above and in continuation of my letter dated 1-6-2001 most kindly consider the question of:

  1.     Abandoning the policy of privatization to encourage the corporate houses to start new ventures.

2.               Banning all financial institutions (FIs) from collecting more than 10% interest on any kind of loan and rescheduling all existing loans to save the people from the debt trap.

3.               Making it mandatory for all banks and FIs to report to the Chief Minister any transaction over Re. one crore and to get the clearance of the State Cabinet for transaction over ten crore as in the USA.
                                                                                     


4.               Directing all banks and all FIs to disburse 60% of the credit to the rural areas to uplift the rural masses.

5.               Annulling the recent decision of the Governor, RBI, to give 5% (nearly Re. 25,000 crore) of the credit to brokers because giving any money to about 100 broker boys of one or two states is anti constitutional, as it would affect the interest of all people all over India.

6.               Permitting the major State Governments to collect at least Re.10,000 crore each from all kinds of service charges in this year alone.

7.               Directing all insurance companies other than the LIC to remit 30% of the premium amount to the State Governments.

8.               Giving an interim relief of 30% to all employees and Re.500 per month to all non- pensioners above 60 years in order to control recession.

9.               Granting a pension to the NRIs proportionate to the amount sent by them through banks and paying a lump sum to those who die in harness to control hawala transactions and

10.          Asking all Punchayats all over India to construct one auditorium or one hospital each using bank loan as it is a self-sustaining one.

Vellicode,                                                                         Yours faithfully,        
20-11-12001.                                                                 (V.SABARIMUTHU)
          A copy of the  above letter was sent to prominent leaders of the political parties also by post. A copy was sent to President of India along with the copy of the first letter.
         
             After the receipt of this letter, Dr. M. Karunanidhi, President of the DMK party, said that his party favoured retention of the PSUs by the Government. He wanted the Government to encourage the Corporate Houses to start new ventures to create new jobs.
             Mr. Mulayam Singh Yadav, again after the receipt of the above letter, requested the Government to preserve the PSUs by infusing more money into them.

          Consistent with the letter, the Government later brought down the lending rates to about 10 per cent.