The government wants to pass the bill in this session of Parliament, but the Congress and other opposition parties have demanded that it be referred to a House panel called the select committee instead.
The Narendra Modi government will not table the Insurance bill, seen as its first big reform move, on Monday and will focus first on attempts to build a consensus on it.
The government wants to pass the bill in this session of Parliament, but the Congress and other opposition parties have demanded that it be referred to a House panel called the select committee instead. If referred to the select committee the government will not be able to pass it in the current session.
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.
"The government appeals to all opposition parties for cooperation in passing the insurance bill," Parliamentary Affairs Minister Venkaiah Naidu told NDTV on Sunday. "I propose to meet the important Opposition leaders in Rajya Sabha tomorrow, along with Finance Minister Arun Jaitley. The government is willing to consider meaningful suggestions."
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-led NDA has a comfortable majority in the Lok Sabha. But in the Rajya Sabha, it will need the support of other parties to pass the bill. 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.