GoM on insurance likely to meet in couple of days
The Group of Ministers on insurance is likely to meet in a couple of days to take up the long-pending issue of raising FDI cap in the sector to 49 per cent from the current 26 per cent, opposed vehemently by the UPA's Left allies.
By PTI |
NEW DELHI: The Group of Ministers on insurance is likely to meet in a couple of days to take up the long-pending issue of raising FDI cap in the sector to 49 per cent from the current 26 per cent, opposed vehemently by the UPA's Left allies.
"They are trying to fix time. I am told it (the meeting) will happen tomorrow or day after tomorrow," Finance Minister P Chidambaram told reporters on the sidelines of the launch of joint venture asset management business between Canara Bank and the Netherlands-based Robeco.
Since only three days are left for Parliament to go for recess, the proposed comprehensive bill on insurance sector, in case approved by the Cabinet, could come only in the second leg of the Budget session.
When asked what is the way forward in the bill, Chidambaram said it depends on the GoM. If the GoM approves the bill, it would go to the Cabinet for approval.
This would be the second sitting of the GoM, headed by External Affairs Minister Pranab Mukherjee.
In January, Chidambaram had indicated to British Chancellor Gordon Brown that the government will bring a bill in Parliament aiming to raise FDI in the sector.
In December last year, the Cabinet had referred the much-awaited bill to the GoM for raising the cap in insurance companies, more than two years after the UPA Government first announced this proposal in its maiden Budget of 2004-05.
Chidambaram had expressed hope then that the GoM should not take more than two sittings to give its view points.
Besides raising of the FDI cap, the proposed bill for comprehensive amendments to insurance laws include amendments in the Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999, among others.
"They are trying to fix time. I am told it (the meeting) will happen tomorrow or day after tomorrow," Finance Minister P Chidambaram told reporters on the sidelines of the launch of joint venture asset management business between Canara Bank and the Netherlands-based Robeco.
Since only three days are left for Parliament to go for recess, the proposed comprehensive bill on insurance sector, in case approved by the Cabinet, could come only in the second leg of the Budget session.
When asked what is the way forward in the bill, Chidambaram said it depends on the GoM. If the GoM approves the bill, it would go to the Cabinet for approval.
This would be the second sitting of the GoM, headed by External Affairs Minister Pranab Mukherjee.
In January, Chidambaram had indicated to British Chancellor Gordon Brown that the government will bring a bill in Parliament aiming to raise FDI in the sector.
In December last year, the Cabinet had referred the much-awaited bill to the GoM for raising the cap in insurance companies, more than two years after the UPA Government first announced this proposal in its maiden Budget of 2004-05.
Chidambaram had expressed hope then that the GoM should not take more than two sittings to give its view points.
Besides raising of the FDI cap, the proposed bill for comprehensive amendments to insurance laws include amendments in the Insurance Act of 1999, LIC Act, 1956 and IRDA Act, 1999, among others.
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