The Cabinet is likely to consider the revised Insurance Bill and a proposal for setting up a coal regulator on Thursday.
Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) may take a view on amended proposal for disinvestment in SAIL besides new proposal for sell off in other public sector undertakings.
The Government has to take a call on whether to go ahead with the original Bill proposal of increasing the foreign direct investment (FDI) in insurance companies from 26 per cent to 49 per cent or to go with the recommendation of the Standing Committee.
The committee is not in favour of increasing the FDI limit. Left parties along with some other political parties are also not in favour of raising the limit. Now the Cabinet is expected to clarify the position.
Though the Government is not bound to accept the recommendation of the committee, but without the required number of members to get the bill passed, it may succumb to political pressure.
The Finance Ministry took the route of Rajya Sabha to introduce the Insurance Bill in December 2008. This means even after dissolution of the current Lok Sabha, the Bill will not lapse. The Standing Committee on Finance submitted its report for this Bill in December last year.
COAL REGULATOR
Another key item likely to figure in the Cabinet meeting is about setting up of an independent Coal Regulator. The Coal Ministry, in a written reply to Lok Sabha on Wednesday said, “The Government has initiated action for setting up of an independent Coal Regulatory Authority.”
The new regulator aims for more optimal development and conservation of coal resources. This will also ensure more effective regulation of price and quality, adoption of best mining practices, better coal distribution and creation of a level playing field for new entrants in the sector, the Ministry added.
DISINVESTMENT
The CCEA may take a call on revising the disinvestment proposal of SAIL. CCEA approved one proposal on April 8, 2010.
The Finance Ministry in its Outcome Budget said that disinvestment would be through offer for sale of Government's equity shareholding of 10 per cent of paid-up capital.
This was to be in conjunction with issue of fresh equity of 10 per cent of SAIL's paid-up capital, in two distinct tranches each comprising 5 per cent offer for sale and 5 per cent issue of fresh equity.
Since SAIL's board decided that the company did not require raising of additional capital, the proposal is being revised to cover only disinvestment by the Government, it added.