PTI has reported that an all-party meeting held a short while ago was inconclusive. (File photo)
An all-party meeting this morning to hammer out a consensus on the Insurance Bill, seen as the two-month Narendra Modi government's first big reform move, remained inconclusive. But in a significant U-turn, Naveen Patnaik's BJD pledged support for the legislation which was also backed by Sharad Pawar's NCP, an old UPA ally.
The Congress and other Opposition parties had demanded that the Bill be referred to a House panel called the select committee for review. The government wants to pass the Bill in the current session of Parliament which will not happen if it is referred to the panel. The ruling BJP-led NDA is in a minority in the Rajya Sabha and needs the help of the Opposition to pass the Bill.
"The country desperately needs investment on many fronts, and in terms of insurance there are many crores of citizens who today don't have insurance facilities," BJD's Jay Panda said, justifying the party's U-turn.
At today's meeting, the government reportedly said that it was ready to accommodate changes suggested by the Opposition and has agreed to a fresh meeting either today or tomorrow.
The Insurance Laws (Amendment) Bill aims to raise the ceiling on Foreign Direct Investment (FDI) in insurance to 49 per cent from the current 26 per cent 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.
On Friday, the Congress, Trinamool Congress and other parties had jointly signed a letter to the chairman of the Rajya Sabha saying that there are substantive changes in the Modi government's version of the Insurance Bill and these must be reviewed by the all-party select committee.
The ruling BJP argues that this is in fact more a "UPA bill." Of the 97 amendments that need Parliament's nod, 86 were proposed by the previous Congress-led government.
The BJP and its partners have 64 MPs in the 250-member Upper House. The Congress has 69. The parties which want the bill sent to a select committee have a combined strength of 136.