Staff Reporter / NEW DELHI
The Communist Party of India (Marxist) has strongly opposed the Union Cabinet’s decision to open nuclear power generation to private and foreign participation, terming the move detrimental to national interests. The party has also expressed its disapproval of the Cabinet’s decision to permit 100 per cent foreign direct investment (FDI) in the insurance sector.
The Union Cabinet has decided to amend the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act (CLNDA), 2010, during the ongoing session of Parliament. According to the CPI(M), the proposed amendments are aimed at facilitating the entry of private companies, including foreign technology and equipment suppliers, into the nuclear energy sector.
In a statement the party warned that opening a strategic and sensitive sector such as nuclear energy to private participation could have serious consequences. It noted that the proposed changes would allow private nuclear operators to determine electricity tariffs, undermining public control over pricing in a critical sector.
The CPI(M) further alleged that the proposed amendment to the CLNDA would weaken provisions related to compensation for victims of nuclear accidents. It accused the government of yielding to pressure from the United States by seeking to absolve equipment manufacturers of liability in case of accidents. This, the party said, would effectively shield private players from accountability while also allowing them greater freedom in tariff fixation.
Describing the decisions as reflective of the BJP-led NDA government’s pro-corporate approach, the CPI(M) said the proposed amendments compromise public safety, accountability and national interest.
FDI in Insurance: Allowing 100 per cent FDI in the insurance sector will destabilise the domestic insurance industry. It will jeopardise policyholders’ privacy and financial security. The commercial priorities of foreign investors will override public welfare objectives. This will undermine financial stability and social security. This move also opens the door to predatory takeovers, resulting in a loss of control over vital national resources.
The CPI(M) calls upon all the democratic sections of the society to oppose these amendments in defence of the country’s interests.