The Union government’s efforts to break the deadlock over the Insurance Laws (Amendment) Bill, 2008, failed with the Congress-led Opposition sticking to its demand that the Bill be referred to a select committee of the Rajya Sabha. The Bill seeks to raise the cap on foreign direct investment in the sector from 26 per cent to 49 per cent.
At a meeting with leaders of various parties, Finance Minister Arun Jaitley offered to introduce the changes that the Congress and others wanted in the Bill without referring it to a select committee. Mr. Jaitley said the Bill was drafted and introduced by the UPA.
BJP sources charged the Congress with blocking the passage of the Bill as a bargaining chip for the position of Leader of Opposition in the Lok Sabha. Congress sources said the Bill could be passed in the winter session of Parliament, a move aimed at denying Prime Minister Narendra Modi the leverage to sell this financial sector reform when he visits the United States in September. The Congress, along with eight parties, proposes to move a motion in the House for forming a select committee on the Bill.
Correction:
This copy has been edited to incorporate the following correction:
>>The report, “ >Insurance Bill still stuck ” (August 5, 2014, front page), said the Insurance Laws (Amendment) Bill, 2008 sought to raise the cap on foreign direct investment in the insurance sector from 29 per cent to 49 per cent. It should have been 26 per cent to 49 per cent.
