New Delhi:
After the Cabinet cleared a new installment of big-bang reforms including more Foreign Direct Investment or FDI in the insurance and pension sectors, Finance Minister briefed the media. Here are the highlights of what Mr Chidambaram said:
- Cabinet approved the declaration of 5 international airports: Lucknow, Varanasi, Tiruchirapalli, Mangalore, Coimbatore.
- We expect that there will be more international traffic, flights
- Cabinet has reviewed rates of risk allowance, hospital care allowance, patient care allowance.
- Existing rates will be doubled.
- Alternatives: Risk insurance schemes, packages didn't work out.
- Financial implication will be Rs 42.16 crore per annum.
- Whenever DNS allowance increased by 50%, the allowances above are increased by 25%.
- Cabinet approved Nagoya protocol on access, benefit sharing by India. Signed by 92 countries. Monetary, non monetary access sharing. Signed it, but now will ratify. Important global step.
- Rich in biodiversity, in associated medicines, oral tradition- can be used to develop products, services to benefit humankind. Our signing this protocol, will bring us rich dividends.
- Cabinet approved amendments to Insurance Bill, 2008.
- Official amendments are being moved.
- Only difference, we think FDI cap should be increased to 49% - the regulator IRDA says insurance requires huge capital, strongly supports FDI.
- We will continue to engage with all political parties to get these bill passed.
- Public sector insurance companies will adopt the policies of govt; benefit will go to private sector insurance companies.
- Cabinet also approved amendments to the PFRDA bill - 5 amendments.
- If insurance bill passes with 49%m pension also will be 49%.
- Cabinet also cleared competition act. Under amendment, no sector is exempted from competition act. That enables exemption to certain specific cases, like merger of two banks where one bank is a failing bank. That can be exempted.
- Already provision to grant exemption, provision remains. Sectoral regulators will regulate. Competition commission will have jurisdiction over all sectors.
- Approved amendments to Companies Bill, which was approved in 2011. Very important bill, designed for 21st century. Takes account of explosion of companies in India.
- Draft 12th five-year-plan document was approved. Average growth rate of 8.2% for plan period. Ambitious plan, estimates resources at ambitious level. Hope to expand interventions in critical areas like health, sanitation etc.
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