8216;Reverse move to divest public stake in HAL8217;

It also sought a roll back of the policy of privatisation and opening up the defence industry to foreign participation,saying such measures would 8220;lead to dismantling of India8217;s hard-won technological self-reliance besides endangering national security8221;.

Terming government8217;s 8220;excuse8221; that HAL needs funds for modernisation as 8220;untenable8221;,it said that with orders having increased by over Rs 8,500 crore and huge contracts in the pipeline including through 30 per cent offsets of several large defence purchase orders,8221;HAL has numerous other options for raising funds.8221;

8220;It is clear the government is succumbing to pressure from corporates who are only looking for substantial and assured profits from a larger share of India8217;s burgeoning expenditure on defence acquisitions,8221; the CPIM said.

Opposing the government8217;s divestment move,it said HAL would be the third defence PSU in which the state has off- loaded stake after Bharat Electronics Limited and Bharat Earth Movers Limited.

8220;HAL is not only much larger,it is also more strategic,being the only aircraft manufacturer in the defence sector and the largest in Asia,8221; the CPIM said.