Seen as a big-ticket reform, the BJP-led Government is expected to reintroduce a Bill in the Rajya Sabha on Monday to increase FDI in the insurance sector from 26 per cent to 49 per cent, even as the Congress and eight other Opposition parties have demanded that it be referred to a Select Committee of the Upper House.
The BJP has issued a whip to party MPs to be present in the Upper House “to ensure” the passing of “the first major reform Bill” of the Modi Government. Unlike in the lok Sabha where the BJP has a clear majority, the party is in a minority in the Rajya Sabha.
The Congress wants scrutiny of the Bill by a parliamentary panel to study “the substantial changes” in the Bill that the UPA Government has drafted. The BJP had opposed the Bill when it was introduced by the UPA Government in 2008 and in a similar vein the Congress had opposed it when the NDA sought to raise the insurance cap to 49 per cent in 2002.
Ahead of the likely introduction of the Bill on Monday, Congress, CPI(M), CPI, SP, BSP, DMK, JD(U), Trinamool Congress and RJD have given a notice to the Chairman of the Upper House Hamid Ansari for referring the controversial Bill to a Select Committee.
It has been agreed upon among the Opposition parties that as soon as the Government moves the controversial Insurance laws (Amendment) Bill in the Rajya Sabha on Monday, they will move a motion pressing for referring it to the Select Committee.
Biju-Janata Dal leader in the lok Sabha, Bhartruhari Mahtab told The Pioneer that his party was not a signatory to the letter written to the Rajya Sabha Chairman. Asked whether he would like the Bill to go to a select Committee, Mahtab said 97 amendments would change “the character of the Bill” and hence it should be discussed by a select committee “for a structured discussion.”
The BJP leader, however, said the current amendments were “for the better” as against those proposed by former Finance Minister P Chidambaram to which “we were completely opposed to.”
According to a central Minister, the Bill will sail through the House as the Government has “worked upon its strategy.”He maintained that it was indeed a “UPA Bill” as of 97 amendments it includes, only 11 amendments proposed by the Modi Government and 86 proposed by the previous Congress-led UPA Government.“Most amendments in the Bill were moved by Chidambaram. Why delay a Bill that was the Congress BillIJ Why should we send it to a Select CommitteeIJ let them vote against their own Bill,” the BJP leader said.
The Government is not convinced with the Congress argument that several amendments have been moved and hence the Bill should go to a select committee. The BJP-led Government is trying to rope in support from the Opposition camps to hurry up the passage of the Bill in the Rajya Sabha and later in the lok Sabha.
According to the Government, the passing of the Bill and thereby raising the ceiling of Foreign Direct Investment (FDI) in insurance to 49 per cent from the current 26 per cent, would give a boost to the economy in terms of speeding up flow of funds in the country. The amendment Bill is expected to bring nearly Rs 25,000 crore additional equity to the fund-starved sector.
The Congress is not per se opposed to the Bill but may “delay” it by way of having it examined by a Select Committee. “The Select Committee is the best via media. The Select Committee is the only way out,” Congress spokesperson Abhishek Singhvi said.
Former Finance Minister and senior Congress leader P Chidambaram had earlier expressed “happiness” over the possible introduction of the Bill. “A tortuous journey of two years has reached a crucial milestone and I sincerely hope that the Bill will be passed in this Session,” Chidambaram had reportedly said in a statement.The Modi Cabinet had approved the amendment last week. The 49 per cent ceiling is proposed to be a composite one - it will include all forms of foreign investments such as FDI, portfolio investment, NRI and others.
While up to 26 per cent foreign investment will be allowed automatically, Government approval over that will be required. Additionally, the control of the insurance venture will have to remain in Indian hands, the Government has said.Besides the Insurance Bill, the Modi-Government is also expected to introduce a Bill on SEBI in lok Sabha, next week.
Déjà vuIJ
The BJP has issued a whip to party MPs to be present in the Upper House “to ensure” the passing of “the first major reform Bill” of the Modi Government
Unlike in the lok Sabha where the BJP has a clear majority, the party is in a minority in the Rajya Sabha
The Congress wants scrutiny of the Bill by a parliamentary panel to study “the substantial changes” in the Bill that the UPA Government has drafted
The BJP had opposed the Bill when it was introduced by the UPA Government in 2008 and in a similar vein the Congress had opposed it when the NDA sought to raise the insurance cap to 49 per cent in 2002