Zee Media Bureau
New Delhi: The Union Cabinet on Wednesday approved ordinances on raising FDI in insurance sector and coal block auction.
The bills could not be taken up in the Rajya Sabha, whose functioning was paralysed in the just-concluded winter session.
Finiancial firms led by Max India and Reliance Capital rallied on news of the government decree which has to be approved by lawmakers within six weeks of the opening of the next session of parliament – scheduled for the start of February.
The Insurance Laws Amendment Bill, 2008 could not be taken up for discussion despite being approved by the Select Committee of the Upper House because of the uproar over the conversion and other issues. The Coal Mines (Special Provisions) Bill, 2014 has already been approved by the Lok Sabha during the session but could make no progress in the other House.
The Insurance Bill, which has been pending since 2008 in the Rajya Sabha, seeks to increase the composite foreign investment limit in insurance companies to 49 percent from current level of 26 percent.
The 49 percent cap would include both FDI and foreign portfolio investments.
The passage of Coal Bill is essential as it would pave way for auctioning of coal mines which were cancelled by the Supreme Court.
With Agency Inputs
