Having exausted its best efforts to get the Insurance (Amendment) Bill and the Coal Mines (Special Provisions) Bill passed by Parliament, the Union Cabinet cleared the Ordinance to increase FDI cap from 26 to 49 per cent in the insurance sector and re- promulgated the Ordinance to allow resumption of coal block allocation. Justifying the decision to bring the Ordinances, Finance Minister Arun Jaitley said the country cannot wait even if one of the Houses of Parliament “waits indefinitely”.
The legislation relating to these two got held up in the Rajya Sabha after the Opposition stalled work at a crucial point when the Bills had to be passed. The urgency for re-promulgation of the Ordinance for Coal was based on a Supreme Court order de-allocating 204 coal blocks in September as the Coal Mines Bill provides for fresh auction of these blocks.
Briefing the media about the outcome of the Cabinet decisions, Jaitley suggested that the Government may go to the extent of calling a joint session if the Insurance Bill is again blocked in the Upper House in the next Session. The ruling party currently does not have the numbers in the Rajya Sabha.
“The (insurance) Ordinance demonstrates the firm commitment and determination of Government to reforms. It also announces to the rest of the world, including investors, that this country can no longer wait even if one of the Houses waits indefinitely to take up its own agenda,” he said, after a meeting of the Union Cabinet.
Noting that “stalemate and obstructionism cannot go on in perpetuity”, Jaitley also suggested that the Government could go to the extent of even convening a Joint Session of Parliament if the Bill was stalled once again in the Budget Session. “If Parliament is not allowed to function, the framers of the Constitution had then made provisions so that decision-making does not come to a halt,” he said.
Without referring to joint session, Jaitley said, "There is still a mechanism" even if one of the Houses does not pass a measure. When again asked about the possibility of convening such a session, he said, "Why don't you read the ConstitutionIJ ... You seem to know the answer."
The Ordinances triggered strong reaction from CPI(M) and Trinamool Congress, which accused the Government of by-passing the Parliamentary democratic process. Protesting against the Government's move, the CPI(M)'s Sitaram Yechury has written to the President not to approve the two Ordinances. "I am sincerely requesting you to intervene in order to stop such tendencies, which may result in imposing an authoritarian manner of parliamentary functioning.
This would be completely antithetical to the letter and spirit of our constitutionally established parliamentary democracy," he wrote. Noting that a Rajya Sabha Select Committee had scrutinised the Insurance Bill, he said its report has not yet been deliberated upon and, therefore, the legislation "remains the property of the House on which a decision is pending."