UPA’s Big Bang reforms: Cabinet approves FDI in insurance, pension
Finally, UPA-II have set on hopes of investors, approved the reform of hike FDI cap in pension and insurance sectors, after opening doors of FDI in the multi-brand retail sector.
Today evening, Union Cabinet met and cleared the cap on FDI in insurance from 26% to 49% and kick off pension to 26% along with granting approval on the Companies Bill.
A move to turn to liberalization of the insurance sector needed Parliamentary approval, where BJP could oppose it. Opposition which is already opposed the FDI in multi retail, still not commenting over UPA second round of reform. No indications are there whether they warm welcome it or hit agitation against it.
Trinamool Congress chief Mamata Banerjee who walked out from UPA due to strong opposition on FDI, also is against hike FDI cap in both sectors. She posted on her Facebook page as per source, “In the name of reforms, loot chalche loot (Loot is going on). To suppress it, jhoot chalche jhoot (lies are being told).”
The second reforms came amid avoidance of a parliamentary committee headed by BJP leader and former finance minister Yashwant Sinha’s rejection on FDI in both sectors.
Meanwhile, all eyes set on Parliament where UPA is in minority and depend on key ally SP chief Mulayam Singh Yadav holding 22 Lok Sabha MPs. While BJP and Left may put their all efforts to stop proposal to approve in parliament, amid opposing FDI in pension and insurance sectors.
“Congress knows the art of managing the numbers. The entire corporate world is behind them. So therefore they have the resources to get the support,” CPI’s Gurudas Dasgupta told a source of media.