Government clears Insurance and Coal bills in Lok Sabha despite Left opposition

NEW DELHI: The government cleared a major hurdle on Wednesday, when the Lok Sabha passed two key economic legislations — the bill to enhance FDI cap to 49% in the insurance sector and the Coal Mines Bill to allow e-auction of coal blocks — by whistling past the Left’s opposition.

Congress members present in the House refused to vote along with the ruling side on the insurance bill and chose to abstain for all but one Left pressed amendments. Congress’ noncommittal tactic, according to party sources, could turn into aggressive opposition when the bill reaches Opposition-dominated Rajya Sabha next week.

By evening a Congress spokesperson waved the red rag by saying the party will oppose the bill in the Rajya Sabha for the "manner and method" in which the government introduced the bill in the Lok Sabha when an identical bill was property of the Upper House. If the government still persists with its introduction, Opposition may demand it be referred to a select committee.

With the LS clearance for the bills, the government faces the most crucial test next week in the Rajya Sabha, when Opposition parties plan to erect a united resistance against the government on the insurance bill.

According to sources, the Coal Bill has brighter chances of clearing the Rajya Sabha. The government side is trying to woo many smaller Opposition parties to pass the RS test. The passage of these two bills by the Lok Sabha means the government has opened the possibility of a joint sitting of Parliament, if the Opposition defeats these bills. What happens if the bill is stuck due to disruptions is anybody’s guess.

Soon after the insurance bill was passed, Minister of State for Finance Jayant Sinha said the government had the option of calling a joint session. Replying to the debate, Sinha said the legislations will boost capital inflow into the sector and will help larger penetration ofSoon after the insurance bill was passed, Minister of State for Finance Jayant Sinha said the government had the option of calling a joint session.

Replying to the debate, Sinha said the legislations will boost capital inflow into the sector and will help larger penetration of insurance covers for Indians. However, Sinha termed the Left’s opposition as a result "of their inadequate understanding of how the financial sector works". It triggered a protest by the Opposition which alleged Sinha was arrogant in his attitude. The ruling side bought peace by making Sinha extend an apology for his remarks.

The LS also passed the coal bill by brushing aside Left/BJD amendments. Coal Minister Piyush Goyal said its passage will ensure "transparent" auctioning of coal blocks.