The Cabinet Committee on Economic Affairs chaired by Union Finance Minister Arun Jaitley along with Union Minister Ravi Shankar Prasad gave its nod on Wednesday to the listing of five government-owned insurance companies in stock exchanges. The companies are New India Assurance,United India Insurance, Oriental Insurance, National Insurance and General Insurance.
Jaitley also said that the credit guarantee trust’s assets will be increased to Rs 7,500 crores by government. Aside from this, the Cabinet has given approval for establishment of Indian Agricultural Research Institute (lARI) in Jharkhand with an outlay of Rs 200 crore and for the introduction of Repealing & Amending Bill, 2017 to repeal 105 Acts. Speaking at the press conference, Prasad said, “Out of 1824 redundant laws till now 1175 have been repealed. Today, we’ve decided to repeal 105 more old laws.”
The cabinet has also given its approval for the amendment in Modified Special Incentive Package Scheme to further incentivise Electronic Sector.
Listing of PSU general insurance firms was announced in the Budget by the Finance Minister. “…(proposed to) undertake important banking sector reform and public listing of public sector general insurance and undertake significant changes in FDI policy,” he had said while unveiling the Budget.
The government has allowed foreign insurance players to raise their stake in their joint venture to 49 per cent.
Earlier, only up to 26 per cent FDI was permitted.
(With PTI inputs)