FDI at 26%, nod for insurance
bill likely today
Times, May 10, 2012
The union cabinet is
likely to approve an amended Insurance Laws Bill, retaining the
foreign direct investment (FDI) cap at 26%, on Thursday. Sources
said the government expects the bill to be tabled and passed in
Parliament during the current budget session.
This is in line with
the recommendations of the standing committee, which had
observed that the proposal to raise the FDI cap to 49% in
insurance companies was ?without any sound and objective
analysis of the status of the insurance sector, following
The government had
introduced the Insurance Laws (Amendment) Bill in the Rajya
Sabha in 2008, which was later examined by Parliament?s standing
?The increased role
of foreign capital may lead to the possibility of exposing the
economy to the vulnerabilities of the global market... flight of
capital outside the country and also endangering the interest of
policy holders,? it said.
The cabinet is also
expected to consider a billfor setting up a coalsector regulator
to ensure transparency in the allocation of coal blocks, and
expedite the resolution of pricing disputes. ?The cabinet may
take up the coal regulatory bill tomorrow (Thursday),? coal
minister Sriprakash Jaiswal said.
On Thursday, the
cabinet is likely to consider a bill to set up special
universities in the public and private sector for research and
innovation in the country. The draft bill has been titled
?Universities for Research and Innovation Bill-2012?.
It proposes to set
up 14 universities that will be fully funded by the government.
The bill also provides for setting up private universities, also
under the PPP model, the number of which will be determined
according to the demand and eligibility of the private players.
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