Arun Jaitley hopeful of passage of Insurance Bill in Winter session

Finance Minister Arun Jaitley on Sunday expressed hope that the long-pending Insurance Laws Amendment Bill, which seeks to raise the FDI cap in the sector to 49 %, will get the Parliament approval in the upcoming Winter Session. "We have opened up investments in various sectors. I do hope this (Winter) session I will be able to pass the Insurance Bill," he said at the India Global Forum meeting here.

The month-long Winter Session of Parliament is scheduled to commence from November 24. FDI in the sector is capped at 26 % at present.

The much-delayed Insurance Bill has been referred to the Select Committee of Parliament. The Bill, which comes with a rider that the management control would rest in the hands of Indian promoter, has been pending since 2008 in the Rajya Sabha. The Minister said India is pursuing the policy of allowing foreign investment with sectoral cap keeping in mind the requirements of the economy and the appetite of the Indian political system.

"When we were in the government last time we opened up the sector. At that time, the political system had an appetite for a limited opening. We are now opening up the sector a little more," he added.

Bowing to opposition pressure, the government had in August agreed to refer the Insurance Bill to the 15-member Select Committee. The committee is expected to submit its report by the third week of November.

The reform, according to experts, could increase the flow of foreign investment to the tune of Rs 25,000 crore into the private insurance companies. The move would help insurance firms to get the much-needed capital from overseas partners.

There are about two dozen private sector insurance firms, both in life and non-life segment in the country.

India will push ahead with reform to a land purchase law blamed by business for slowing industrial projects, even if there is resistance to loosening the rules, Finance Minister Arun Jaitley said on Sunday. Jaitley said changes to the law were needed to fulfil Prime Minister Modi's vision of building 100 new "smart" cities across India.

"Some changes will be necessary, we will first attempt to reach a consensus, if that's not possible we will go ahead and take the decision," Jaitley said, speaking at a seminar in New Delhi.

The law was passed last year with support of Modi's Bharatiya Janata Party when it was in opposition, and seeks to set fair compensation for loss of livelihood for farmers who sell their land to industrial or infrastructure projects. But its complex procedures have made it very hard for large-scale industrial projects to acquire the land they need.

The BJP would need parliamentary approval to change the law, and might struggle in the upper house where it does not have a majority.

Jaitley also said he hoped to begin a delayed programme to sell stakes in government owned companies "in the next couple of days". He said the government was aiming to bring down its equity in public sector banks to about 52 %.

Jaitley also took potshhots at rival Congress party. 

He said the country cannot afford to have a non-politician as the Prime Minister.

"India suffered for a decade, amongst various factors and which I strongly believe, that India cannot afford to have a non-politician as a Prime Minister. A Prime Minister has to be a decisive leader," Jaitley said while speaking at The India Global Forum event.

"He is not going to be eventually judged by how many years he stayed in years. He is going to be judged by the footprints he leaves behind," he added. Talking about the 2014 Lok Sabha polls, Jaitley took a jibe at the dynasty politics.

"After long time we saw an election in India, where the dominant issues were governance issues, there were issues relating to corruption, issues relating to probity, issues relating to the economy or the management of the economy or its mismanagement earlier, and third most important there were issues relating to quality of leadership," Jaitley said.

"Almost all parties which relied on charisma of families by and large did badly. I hardly find exception to this principle. It's probably necessary that this myth that only dynasties can produce charisma has to be demolished," he added.