New Delhi: Even as the share markets surge ahead of Congress-led United Progressive Alliance (UPA) Government's second round of reforms, the Opposition is getting ready to stymie the move. The UPA Cabinet is expected to clear 26 per cent foreign direct investment (FDI) in pension and raise the cap in insurance to 49 per cent on Thursday.
But the passage of the two bills in Parliament is likely to be a stormy affair with the Bharatiya Janata Party (BJP), Left Front, Trinamool Congress, Samajwadi Party, Bahujan Samaj Party and Biju Janata Dal voicing their opposition to raising FDI cap in insurance. While the BJP has no objections with the 26 per cent cap in pension, its leaders have made it clear that they will not support the move to raise it. The BJP has assured support to the government on pension bill, this could be jeopardised by the government pushing for 49 per cent FDI in insurance.
Parties like the Samajwadi Party and Bahujan Samaj Party, who are extending outside support to the UPA, are also against the move while the Trinamool Congress and the Left have said that they will defeat the bills in Parliament.
"We will vote against it. We shall oppose it keeping in view the security concerns of the ordinary people. We hope that we will be able to defeat this bill in Parliament," Trinamool Congress leader Saugata Roy said. CPI leader D Raja added, "We will oppose FDI in insurance. What is new about the pension scheme? Why should India succumb to World Bank's policies?"
Stand of parties on FDI in pension:
BJP opposed. Supports cap of 26 per cent as per Parliament's standing committee on finance recommendations. Trinamool Congress, Samajwadi Party, Bahujan Samaj Party, Biju Janata Dal, Left parties opposed as well
Stand of parties on raising FDI limit in insurance:
BJP opposed to FDI over 26 per cent. Trinamool Congress, Samajwadi Party, Bahujan Samaj Party, Biju Janata Dal, Left parties also against the move.
To get these bills passed in Parliament, the UPA needs a simple majority in both houses. With Mamata Banerjee's Trinamool Congress gone, the government is dependent on the Samajwadi Party and Bahujan Samaj Party for bailout.
At the moment, UPA has 254 members in the Lok Sabha. Parliament rules state that government needs to have a simple majority from those members who are present and voting to get a bill passed.