From insurance to pension,more reforms on Cabinet table today

While conceding that the amendments would have to be passed ultimately by Parliament,a senior minister said the government was resolved to shake off accusations of a policy paralysis. “When these reach Parliament,let us see what happens,” he said.

On insurance,the Union Cabinet will seek approval for amendment of the Insurance Laws Amendment Bill 2008 and raising of FDI to 49 per cent from the existing 26 per cent. The Bill has been pending in the Rajya Sabha as the government has not been able to get the BJP on board besides facing opposition from allies. More significantly,the proposal goes against the recommendation of the Standing Committee on Finance headed by senior BJP leader Yashwant Sinha,which has suggested that the FDI ceiling in insurance be maintained at 26 per cent.

In the Pension Fund Regulatory and Development Authority Bill 2011,the Cabinet will seek to bring amendments to allow 26 per cent FDI in the pension sector. The government had encountered hurdles from Mamata Banerjee on this Bill too besides opposition from the Left.

The Cabinet will also seek approval for amendments to the Forward Contracts (Regulation) Amendment Bill 2010,which seeks to allow trading in commodity derivatives while transforming the role of the Forward Market Commission to an independent regulator.

Approvals are also being sought for amendments to the Competition Act and the Companies Bill as well as the Employment Exchanges (Compulsory Notification of Vacancies) Act 1959.