Efforts of the beleaguered UPA Government to ensure passage of the much delayed Insurance laws (Amendment) Bill 2008 during the ongoing Winter session may not bear fruit as the principal Opposition party the BJP, post its emphatic wins in four key northern Indian States has now put a price on its support to the legislation, which proposes to increase foreign direct investment (FDI) in the insurance sector from the existing 26 per cent to 49 per cent.
According to sources close to the development, the mood prevailing within the BJP is that of blocking this as well as the other key economic bill namely the Direct Tax Code (DTC) Bill 2010, which is also awaiting Parliamentary nod.
The main thought behind this stand by the principal Opposition party is that it wants to convey a message to the market as well as the common public that with just four months left for the lok Sabha elections and the Congress-led UPA already on shaky ground (post the heavy defeats it faced in Delhi, Rajasthan, Madhya Pradesh and Chhattisgarh assembly polls last week), a new dispensation at the Centre (in all probability the BJP-led NDA) should be given the opportunity to bring in these key legislations.
Sources further said that the BJP wants to portray a strong image of a reformist party and by opposing the Insurance Amendment as well as the DTC Bills, it wants to ensure that the 16th lok Sabha which would be convened after the 2014 general elections, clears these legislations.
The victory in the four assembly polls in key north Indian States has come as a shot in the arm for the BJP and it is riding on a renewed sense of confidence of repeating its performance in the lok Sabha polls also. Hence it has decided to toughen its stand on the two Bills.
The Insurance laws (Amendment) Bill 2008 which had been introduced in Rajya Sabha, has been hanging fire since the last five years and even the Parliamentary Standing Committee on Finance which is headed by senior BJP leader Yashwant Sinha, (to which it had been referred) had rejected the proposal to hike the FDI cap in the insurance sector. It had instead suggested maintenance of status quo (that is retaining the 26 per cent cap).
Prior to the beginning of the ongoing Winter session, Finance Minister P Chidambaram had exuded confidence that the Insurance Bill would be passed and he had even claimed to have been assured by the BJP of its support on passage of this as well as several other key economic bills which are awaiting Parliamentary nod.
The Bill may find its passage difficult in the Parliament without the BJP's support.
The Direct Taxes Code Bill, 2010 which aims to replace the Income Tax Act of 1961, is also pending in lok Sabha where it was first introduced. The BJP has not made its stand clear on the Bill.
Chidambaram had met senior BJP leaders Sushma Swaraj (leader of Opposition in the lok Sabha) and Arun Jaitley (leader of Opposition in the Rajya Sabha) prior to the commencement of the Winter session, to seek the party's support on the passage of the pending Bills.
"The Opposition parties have promised me they will pass the Insurance Bill... Most parties, including the principal opposition party, have expressed their support for insurance bill. I hope with majority support, if not unanimous support, we will be able to pass the insurance bill," Chidambaram had said before the commencement of the Winter session.