Union Finance Minister Arun Jaitley has informed the Rajya Sabha that the government is referring the Insurance Bill proposing hiking of FDI in the sector to 49% to the Select Committee. Seen as the first major economic reforms initiative of the new government, the Bill has hit a road block after the Opposition demanded changes to certain provisions of the bill.
The committee will have 15 memebrs, with the chair position proposed to be given to Chandan Mitra, Mukhtar Abbas Naqvi or Jagat Prakash Nadda of the ruling party. Anand Sharma, BK Hariprasad and JD Seelam (all Cong), Satish Chandra Misra (BSP), KC Tyagi (JD-U), Derek O’Brien (TMC), V Maitreyan (AIADMK), Naresh Gujral (SAD), Ram Gopal Yadav (SP), Kalpataru Das (BJD), P Rajiv (CPI-M) and Rajiv Chandrasekhar (Ind) will be members. The committee will submit the report on the last day of the first week of the next session.
Though Congress too supported the idea of increasing FDI in Insurance when it was in power, it is now primarily objecting to certain provisions of the bill saying that they might result in foreign domination in a sector that is very crucial to the well being of Indian people.