Report on insurance bill tabled in Rajya Sabha

With Congress members dropping their earlier opposition, a select committee of the Rajya Sabha headed by BJP leader Chandan Mitra Wednesday tabled its report on insurance bill in the upper house Wednesday.

The Bill proposes to raise the existing 26 percent cap on foreign direct investment (FDI) in the sector to 49 percent. The committee, according to sources, has said that the cap on foreign investment in insurance should include FDI and foreign portfolio investments (FII).

One of the Congress' demands was that FDI and FII are kept separate so that the foreign money does not breach the sectoral cap of 49 percent.

According to sources, at least 11 out of the 15 members agreed to the report by the select committee.

Showing intent on speeding up reforms, the government has expressed confidence at getting the insurance bill passed thorugh parliament. Its passing will allow Indian insurance companies easier access to much-needed capital for growth.

The government can convene a joint session to get the bill passed but only after it is voted on and defeated in the Rajya Sabha.

The BJP has a comfortable majority in the Lok Sabha but has only 42 members in the Rajya Sabha. The BJP-led National Democratic Alliance (NDA) has 57 members while the Congress has 69 in the Rajya Sabha.

The BJP had opposed the insurance bill when the previous UPA government had tabled it in the Rajya Sabha.