President Pranab Mukherjee inks ordinances for insurance, coal

NEW DELHI: President Pranab Mukherjee on Friday signed the insurance and coal ordinances despite protests from the opposition. The insurance ordinance will increase foreign investment limit in insurance sector to 49% from the current 26% while the coal ordinance will provide legal backing for auction of coal blocks cancelled by the Supreme Court.

The government had promulgated these ordinances on Wednesday, a day after the winter session of parliament ended without passing these crucial bills.

The president has signed the two ordinances, Press secretary Venu Rajamony said. “The ordinances demonstrate the firm commitment and determination of this government to reforms. It also announces to the rest of the world including investors that this country can no longer wait even if one of the houses of Parliament waits indefinitely to take up its agenda,” finance minister Arun Jaitley had said on Wednesday announcing cabinet’s decision to issue them.

The government expects $6-$8billion foreign investment into the funds starved insurance sector through this relaxation.