Opposition may stonewall Modi’s first Reforms Bill

New Delhi: In a bid to ensure a smooth passage of Insurance Bill, Parliamentary Affairs Minister, Venkaiah Naidu, on Monday called an all-party meet. As, uncertainty loomed over immediate passage of the Insurance Bill, Modi government’s first major reform initiative to raise FDI cap in the sector to 49%, with nine parties including Congress had already given notice in Rajya Sabha for referring the Bill to Select Committee.

 
Sources said Congress, CPI-M, CPI, SP, BSP, DMK, JD(U), Trinamool Congress and RJD have given a notice to the Chairman of the Upper House Hamid Ansari for referring the controversial Bill, which the government proposes to bring in Rajya Sabha on Monday, to a Select Committee.
 
AIADMK, which despite not being an ally, supports the government on key issues, had also agreed to back the nine parties in the endeavour though it is not a signatory to the notice. However, BJD, which was reluctant to support the Bill at first, has now given a nod for it.
 

The government wants to pass the Bill in this session of Parliament, but Congress and other opposition parties have demanded that it be referred to a House panel called the select committee instead. If referred to the select committee the government will not be able to pass it in the current session.

The Insurance Laws (Amendment) Bill aims to raise the ceiling on Foreign Direct Investment (FDI) in insurance to 49% from the current 26% limit.  It is an important part of the government’s efforts to revive a sluggish economy; higher FDI in the sector could result in the inflow of up to an estimated Rs 60,000 crore and immediate inflow of Rs 20,000 crore, experts have said. 

Sources said the government may move the Bill in the Rajya Sabha on Tuesday depending on how talks with the Opposition parties progress. 

BJP has a comfortable majority in the Lok Sabha. But in the Rajya Sabha, it will need the support of other parties to pass the bill. BJP and its partners have 64 MPs in the 250-member Upper House. Congress has 69. The parties which want the bill sent to a select committee have a combined strength of 136.