JOIN USCong backs insurance bill in RS
The Narendra Modi government managed a breakthrough on a long-pending key reforms bill on Thursday after Parliament approved the increase in foreign direct investment (FDI) in the insurance sector from 26 per cent to 49.
The Insurance Laws (Amendment) Bill cleared the last hurdle of the Rajya Sabha after the Congress was brought on board by the Bharatiya Janata Party (BJP). The Centre also managed a broad consensus among some other parties.
The Left parties voted against the bill, which was debated for about three hours, to replace an ordinance. The Bahujan Samaj Party and the Trinamool Congress (TMC) walked out before the legislation was approved through a voice vote.
The Trinamool Congress accused the Congress of joining hands with the BJP. Amendments moved by CPM and CPI members were rejected.
The smooth passage of the bill, which was cleared by the Lok Sabha on March 4 after the Congress abstained from voting, came after the ruling BJP agreed to the Opposition’s demand for referring reforms bills on coal auction and mines and minerals development to select committees of the Rajya Sabha.
The bill allows public sector general insurers to raise funds from the capital market and provides for increased penalty to deter multi-level marketing of insurance products.
The opening of the insurance sector is one of the measures that, the National Democratic Alliance government hopes, will make India an investment destination.
The government may be able to clear the coal bill and mines and minerals bill in the Rajya Sabha by March 20 but it may find it difficult on another reforms bill – amendments to the existing Land Acquisition Act.
The Congress as well as several other parties have already announced that they would oppose the land bill in the Rajya Sabha, where the government is in a minority.