Friday, January 14 2005 14:06 Hrs (IST) - World Time -

Kolkata: A day after CPM (Communist Party of India Marxist) criticised the scrapping of Press Note-18 as an 'unwarranted step,' veteran Marxist leader and party Politburo member Jyoti Basu today (Jan 14, 2005) hit out at the UPA (United Progressive Alliance) Government saying that invitation of foreign direct investment (FDI) should not be one-sided.

"We are objecting to invitation of foreign direct investment in some sectors. The Left Coordination Committee is discussing with the UPA alliance. Foreign investment is allowed if it is in mutual interest. It should not be one sided," Basu told newsmen before going to attend the weekly CPM state secretariat meeting.

The former West Bengal Chief Minister was reacting to the announcement by Prime Minister Manmohan Singh in Kolkata on Wednesday (Jan 12, 2005) of his Government's decision to scrap Press Note-18.

While making the announcement, Singh said that the regulatory provisions of Press Note-18 were causing some discomfort to investors.

Press Note 18, the contentious joint venture regulation, required a foreign partner in an Indian joint venture to get no objection from the Indian partner to start a new venture in the same field or in allied area.

Yesterday (Jan 13, 2005), the CPM hit out at the UPA Government for being 'unduly sensitive' to foreign capital and 'neglecting' the interests of the domestic industry, while saying that scrapping of Press Note-18 was an unwarranted step. The rationale that FDI flow was being hampered by provisions of Press Note-18 was 'untenable,' the party said.