he chances of higher Foreign Direct Investment (FDI) limit in insurance sector have brightened with the UPA government considering a renewed bid to get parliament’s assent in the monsoon session.
Two allies, -one new, one old – will help the government. Janata Dal (United or Jd (U), with 17 MPs has parted ways with the Bhartiya Janata Party (BJP) and will try to prove its political distance from its former partner.
The Dravida Munnetra Kazhagam (DMK) with 18 MPs had walked out of the Congress-led UPA, but Congress’s assistance in the recent election of Kanimozhi to the Rajya Sabha will not go unacknowledged, top DMK leaders have told the Congress.
Kanimozhi, the daughter of DMK supremo M Karunanidhi, could have not won the election without Congress support.
This solid phalanx of 35 MPs, coupled with the Samajwadi Party (22 MPs) and the Bahujan Samaj Party (21 MPs) whose letters of support to the UPA continued to be lodged in the safe custody of the President of India, means the government can technically clear the Insurance bill in Lok Sabha.
The bill need assent of 272 Mps in the Lok Sabha. With 204 of its own and the assurance that nearly 100 other Mps will support, the Congress says that it is more confident now that the bill has a chance of being passed.
Its passage would pave the way for higher FDI in insurance as well as the pension sector. Liberalization in the two sectors is linked to each other.
The BJP is opposing to both. It says that there should be standard 26 % FDI limit for the financial sector.
Standing Committee on Finance, headed by BJP leader, Yashwant Sinha said that the FDI limit should not be raised. This was not accepted by the government while finalizing the bill.
Clearing the Insurance bill will be a big feather in the government’s cap, given that it has been pending for five years.
Two allies, -one new, one old – will help the government. Janata Dal (United or Jd (U), with 17 MPs has parted ways with the Bhartiya Janata Party (BJP) and will try to prove its political distance from its former partner.
The Dravida Munnetra Kazhagam (DMK) with 18 MPs had walked out of the Congress-led UPA, but Congress’s assistance in the recent election of Kanimozhi to the Rajya Sabha will not go unacknowledged, top DMK leaders have told the Congress.
Kanimozhi, the daughter of DMK supremo M Karunanidhi, could have not won the election without Congress support.
This solid phalanx of 35 MPs, coupled with the Samajwadi Party (22 MPs) and the Bahujan Samaj Party (21 MPs) whose letters of support to the UPA continued to be lodged in the safe custody of the President of India, means the government can technically clear the Insurance bill in Lok Sabha.
The bill need assent of 272 Mps in the Lok Sabha. With 204 of its own and the assurance that nearly 100 other Mps will support, the Congress says that it is more confident now that the bill has a chance of being passed.
Its passage would pave the way for higher FDI in insurance as well as the pension sector. Liberalization in the two sectors is linked to each other.
The BJP is opposing to both. It says that there should be standard 26 % FDI limit for the financial sector.
Standing Committee on Finance, headed by BJP leader, Yashwant Sinha said that the FDI limit should not be raised. This was not accepted by the government while finalizing the bill.
Clearing the Insurance bill will be a big feather in the government’s cap, given that it has been pending for five years.
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