Opposition halts govt push for Insurance Bill

Opposition’s reservation is on one amendment, which makes it clear that 49 per cent FDI will be a composite cap.

Congress MP Ambika Soni with CPI’s D Raja in Parliament House on Thursday. (Source: IE photo by Praveen Jain)

The NDA government’s plan to push through the Insurance Laws (Amendment) Bill to raise the FDI ceiling from 26 per cent to 49 per cent in the current session of Parliament Thursday ran into rough weather, with the opposition parties demanding that the Bill be sent to a select committee of Rajya Sabha (RS) since the amendments proposed by the government were substantial and ought to be looked into afresh.

The Bill was listed in the Upper House Thursday, but was not taken up. The Congress, whose government had introduced the Bill and was hence supportive of the legislation, sensed the mood of the smaller opposition parties and is learnt to have decided to play along in what is being seen as a tit-for-tat move. The BJP had blocked many reform legislations, including the same insurance Bill, when it was in the opposition.

The Business Advisory Committee of Rajya Sabha, which met Thursday, saw several parties, including the Left, TMC, SP, BSP, JD(U) and DMK demanding that the Bill be sent to the select committee. The Congress is learnt to have supported the demand. The government did not agree and sources said it was decided to let the House take a call on Monday regarding when the Bill will be taken up.

The government has moved 97 amendments, of which only a handful are significant. The Opposition’s reservation is on one amendment, which makes it clear that 49 per cent FDI will be a composite cap, including both foreign direct investment and portfolio investment. “This makes it a de facto new Bill… Either the government should withdraw the Bill and introduce a new one, so we can move amendments, or send it to the select committee,” CPM’s P Rajeeve told The Indian Express.

Former commerce minister and Congress deputy leader in Rajya Sabha Anand Sharma said “if the parties in the opposition are demanding that select committee should have a look at it, the government should agree”. Parliamentary Affairs Minister Venkaiah Naidu had met Sharma to discuss the Bill. Sources said the Congress is divided on its stand on the Bill, but decided to play along with the rest of the opposition to put the government on the back foot. The NDA government is in a minority in the Upper House.

“If we can wait for so long, we should wait a few more months,” Sharma said. Regarding the amendment, he said the inclusion of portfolio investors is a “departure”. “FDI stays with the company for creation of the capital. Foreign institutional investors may not. Foreign institutional investment can move out. That is the difference between what we had brought in and we they are doing,” Sharma said.

Manoj C.G

Manoj C G currently serves as the Chief of National Political Bureau at The Indian Express. A veteran journalist with a career spanning nearly two decades, he plays a pivotal role in shaping the publication's coverage of India's political landscape. Experience & Career: Manoj has built a robust career in political journalism, marked by a transition from wire service reporting to in-depth newspaper analysis. The Indian Express (2008 – Present): He joined the organization in 2008 and has risen to lead the National Political Bureau, overseeing key political coverage. Press Trust of India (PTI): Prior to his tenure at The Indian Express, Manoj worked with India’s premier news agency, PTI, honing his skills in breaking news and accurate reporting. Expertise & Focus Areas: As a seasoned political observer, Manoj focuses on the nuances of governance and party dynamics. National Politics: extensive reporting on the central government, parliamentary affairs, and national elections. Political Strategy: Deep analysis of party structures, coalition politics, and the shifting ideologies within the Indian political spectrum. Bureau Leadership: directing a team of reporters to cover the most critical developments in the nation's capital. Authoritativeness & Trust: Manoj’s authoritativeness is grounded in his nearly 20 years of field experience and his leadership role at a legacy newspaper. His long-standing association with The Indian Express underscores a reputation for consistency, editorial integrity, and rigorous reporting standards required of a Bureau Chief. Find all stories by Manoj C G here. ... Read More