Terming the action of the BJP government at the Centre in issuing an ordinance for increasing the FDI ceiling in Insurance sector from 26 percent to 49 percent in less than 24 hours of the adjournment of Parliament as mockery of Parliamentary democracy, DMK President Kalaignar M. Karunanidhi appealed to President Pranab Mukherjee not to give approval for the ordinance.
In a statement on Dec 26, Kalaignar recalled his reply to a question on the BJP regime at the Centre extending invitation for foreign direct investment (FDI) that “the BJP Ministry at the Centre has approved increasing FDI in insurance sector from 26 percent to 49 percent, by which it was expected to get FDI of Rs.25,000 crore in the sector. The previous UPA rule itself took steps for increasing this limit to 49 percent for which Insurance Act amendment bill was also tabled in Parliament. But it could not be adopted due to the opposition of many political parties including the BJP. It is a wrong practice for the BJP, which opposed the move then, now taking the same decision after coming to power. Steps such as invitation for FDI, disinvestment in PSU units, privatization of even manufacturing of defence products were not only reactionary but also would badly affect our economy”.
On the contrary, the Union Cabinet meeting presided over by Prime Minister Narendra Modi on Dec 24 has decided to issue ordinances for increasing FDI in insurance sector from 26 percent to 49 percent, for the auction of coal mines and for permitting 100 percent FDI in medical equipment sector.
As the government could not get approval for these bills in the Rajya Sabha, the BJP had decided to bring them in the form of ordinances after the end of Parliament winter session. Sitaram Yechury MP, one of the leaders of the CPI (M) has appealed to the President, in a letter addressed to him, not to give his approval for the ordinance for increasing the FDI limit in insurance sector.
The select committee of the Rajya Sabha discussed the draft Insurance and its report was placed in the House, but no debate took place on it so far. In that respect it was still the property of the House. When the decision on it was pending, if an ordinance was issued on the same matter, it amounted to violation of the sanctity of Parliament, Kalaignar said.
When the bill was sent to the standing committee in 2008 and it presented its report in 2011, it was the unanimous view of all including its chairman and BJP leader Yashwant Sinha, who stated “I was the first to permit private sector in insurance sector hoping to attract lot of FDI into India. I also expected that with the arrival of private sector, rural people would get insurance facilities and insurance would be available at cheaper rates. But in the last 15 years, nothing that I expected happened in private companies”. But in the regime of the same party negative step had been taken, Kalaignar noted.
At the international level, only India had the high level of personal savings of people and hence the savings of our people would turn into capital of MNCs. There was no guarantee that they would not flee with this money if they faced any crisis. Particularly, there was no need at all for FDI in insurance sector. Only LIC had lent Rs.1,04,450 crore to electricity sector as investment. The Chairman of NHAI has said that they were depending on LIC for their need of Rs.10,000 crore. The LIC has invested in major shares of the Indian Railways Finance Corporation. Thus when the public sector insurance companies were remaining as life stream for core industrial development, why should the Centre yearn for foreign investment, Kalaignar asked.
When the Central government did not have majority in the Rajya Sabha, attempting to bring ordinance through backdoor would turn parliamentary democracy into a laughing stock, Kalaignar said and appealed to President Pranab Mukherjee not to give approval for the ordinance.
In a statement on Dec 26, Kalaignar recalled his reply to a question on the BJP regime at the Centre extending invitation for foreign direct investment (FDI) that “the BJP Ministry at the Centre has approved increasing FDI in insurance sector from 26 percent to 49 percent, by which it was expected to get FDI of Rs.25,000 crore in the sector. The previous UPA rule itself took steps for increasing this limit to 49 percent for which Insurance Act amendment bill was also tabled in Parliament. But it could not be adopted due to the opposition of many political parties including the BJP. It is a wrong practice for the BJP, which opposed the move then, now taking the same decision after coming to power. Steps such as invitation for FDI, disinvestment in PSU units, privatization of even manufacturing of defence products were not only reactionary but also would badly affect our economy”.
On the contrary, the Union Cabinet meeting presided over by Prime Minister Narendra Modi on Dec 24 has decided to issue ordinances for increasing FDI in insurance sector from 26 percent to 49 percent, for the auction of coal mines and for permitting 100 percent FDI in medical equipment sector.
As the government could not get approval for these bills in the Rajya Sabha, the BJP had decided to bring them in the form of ordinances after the end of Parliament winter session. Sitaram Yechury MP, one of the leaders of the CPI (M) has appealed to the President, in a letter addressed to him, not to give his approval for the ordinance for increasing the FDI limit in insurance sector.
The select committee of the Rajya Sabha discussed the draft Insurance and its report was placed in the House, but no debate took place on it so far. In that respect it was still the property of the House. When the decision on it was pending, if an ordinance was issued on the same matter, it amounted to violation of the sanctity of Parliament, Kalaignar said.
When the bill was sent to the standing committee in 2008 and it presented its report in 2011, it was the unanimous view of all including its chairman and BJP leader Yashwant Sinha, who stated “I was the first to permit private sector in insurance sector hoping to attract lot of FDI into India. I also expected that with the arrival of private sector, rural people would get insurance facilities and insurance would be available at cheaper rates. But in the last 15 years, nothing that I expected happened in private companies”. But in the regime of the same party negative step had been taken, Kalaignar noted.
At the international level, only India had the high level of personal savings of people and hence the savings of our people would turn into capital of MNCs. There was no guarantee that they would not flee with this money if they faced any crisis. Particularly, there was no need at all for FDI in insurance sector. Only LIC had lent Rs.1,04,450 crore to electricity sector as investment. The Chairman of NHAI has said that they were depending on LIC for their need of Rs.10,000 crore. The LIC has invested in major shares of the Indian Railways Finance Corporation. Thus when the public sector insurance companies were remaining as life stream for core industrial development, why should the Centre yearn for foreign investment, Kalaignar asked.
When the Central government did not have majority in the Rajya Sabha, attempting to bring ordinance through backdoor would turn parliamentary democracy into a laughing stock, Kalaignar said and appealed to President Pranab Mukherjee not to give approval for the ordinance.
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