Rift In Bjp Holds Insurance Reforms Over

Differences within the BJP over how much foreign equity should be allowed in joint ventures in the insurance sector is preventing the government from moving ahead on opening the sector to private players. "Those in favour of more than 26 per cent equity to foreign insurance companies have not been able to convince those who want a 20 per cent cap," a BJP leader close to Prime Minster A B Vajpayee said. The finance ministry has prepared a note recommending 26 per cent equity for foreign insurance companies.

A BJP leader in the party's economic think-tank said the issue was sensitive and the government should have moved quietly. He blamed the Confederation of Indian Industry (CII) for "unnecessarily" focusing attention on insurance reforms up by organising a much-publicised seminar in the capital. "The more we talk about it, the more we will alert the section within the party which is opposed to it," he said. The fact that the CII seminar had Congress MP Murli Deora as the main speaker has also not gone unnoticed. "How can you organise a seminar and not have the main speaker from the ruling party which is responsible for taking the decision," the BJP leader wondered. Interestingly, the section in the BJP pressing for the ceiling appears to have mellowed down .