After having managed to push through the major reforms legislations such as the Banking and Companies Bills and also getting through with the 51 per cent foreign direct investment (FDI) in multi-brand retail, the UPA II dispensation will have to wait till the budget session of Parliament to get the Insurance Bill passed which seeks to raise the FDI cap in the insurance sector to 45 per cent.
With the current session set to end on December 20 and the quota in promotion legislation still being slugged out in Parliament, there is very little likelihood of the Insurance Laws (Amendment) Bill being passed in winter session. At present, the FDI cap in insurance stands at 26 per cent and the amendment Bill seeks to raise it to 45 per cent for the private sector. “Insurance Bill is unlikely to come up for discussion and passage during this session,” sources in the government said.
Because of the deferment of the insurance bill, the legislation to reform the pension sector is also likely to be delayed as the two are related. As part of economic reforms, the government is keen to pass the Bill, but the main Opposition party, BJP, is for keeping the FDI ceiling at 26 per cent. The Left Parties are opposing the Bill.
