Cement cartel existed, but Centre failed to act: Chidambaram

By Our Special Correspondent

MADURAI, AUG. 26. The former Union Finance Minister, Mr. P. Chidambaram, today acknowledged the presence of a `cement cartel' till 1999-2000 but accused the Union Government of failing to initiate any action against it.

Talking to newsmen here, he said the Union Government, of which the AIADMK and the DMK had been partners, should not remain silent over cartelisation of the cement industry. It was the TMC which came out against the cartel, he said, and wondered why the AIADMK was silent then. Since cement had been decontrolled long back, the Government could not do anything to control its price. But that did not explain why it had not taken any steps against cartelisation.

Pointing out that the Monopolies and Restrictive Trade Practices Commission had started an enquiry into the `cement cartel', Mr. Chidambaram said the State Government should submit evidence available with it before the panel. However, the quantum of money mopped up by the cartel, as revealed by the Finance Minister, Mr. C. Ponnaiyan, in the Assembly yesterday could have been arrived at by a rough calculation. But Mr. Chidambaram did not see the existence of the cartel now.

Describing the State budget as ``lacking in a central theme'', Mr. Chidambaram said he would make a detailed analysis of it at a meeting in Chennai on September 6. The performance of the AIADMK Government would be analysed at the general council meeting of the TMC Democratic Forum to be held during the first week of next month. The meeting would also decide whether the Forum should be converted into a political outfit.

On formation of a third front in the State, he said the parties which had the ``Congress gene'', such as the TMC should take the lead for the revival of Congress rule. His outfit was prepared to cooperate with like-minded parties. A clear picture about the political alignments would emerge only during the elections to local bodies. The TMC Democratic Forum would nominate able and educated youth and it had given a commitment to field apolitical women for seats reserved for them. This way, it would be possible to bring women into the public life first before their making an entry into politics, instead of its happening the other way round.

UTI controversy

On Unit Trust of India, Mr. Chidambaram said it would not be possible to revive it fully. One good thing so far was that investors had not panicked. The new head of the UTI, Mr. Damodaran, was a ``honest and straight forward official'' and he had initiated certain steps to revive investor confidence.

Mr. Chidambaram brushed aside the charge of the Janata Party president, Dr. Subramanian Swamy, that he was responsible for blocking an enquiry into the UTI affairs, and said ``let them (the Government) take action if there was any corruption''``.

Mr. Chidambaram said those at the helm of affairs were either lacking in ideas of their own or deaf to suggestions from outside. Unless action was initiated to stop the deterioration in the investment climate, the GDP growth would suffer, leading to largescale unemployment and frustration among educated youth.

Accusing the Union Government of being ``inactive'', Mr. Chidambaram wondered how the economy would revive when it was facing attacks from three sides. Foreign investment had come down and foreign remittance was also low. The Indian investor was also not enthusiastic. In such a scenario, how could the climate improve?.

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