Friday, July 07, 2006

india slows down on privatization

The Indian Prime Minister, Manmohan Singh, has postponed further decisions on the sale of state-run companies following a political crisis in Tamil Nadu. The DMK, which is currently the governing party in that province, threaten to quit the national coalition government if a decision to sell a 10 percent interest in a mining and power firm was carried out. The decision demonstrates the uncertain status of privatization efforts in India, at least in the short term, as well as the considerable vulnerability of the ruling coalition.


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