In what is seen as another setback to its pro-reform agenda, the UPA Government on Wednesday removed the Pension Fund Regulatory and Development Authority Bill at the last minute from the Lok Sabha's business list of the day.
This move was prompted largely by objections raised by the Trinamool Congress leader, Ms Mamata Banerjee, to certain provisions in the PFRDA Bill, sources said. However, certain sections in the Government maintained that the Bill could not be taken up today as the Cabinet was yet to approve certain amendments.
Even as Parliament will meet from December 27-29 to complete Government business, indications are that this Pension Bill may not be pursued within the ongoing winter session.
The UPA Government has, in the last one month, faced stiff resistance from its own allies in going ahead with economic reforms. After announcing opening up of multi-brand retail to foreign investment (up to 51 per cent), the Government retracted its decision and kept it in abeyance in the wake of stiff opposition from its own allies like Trinamool Congress and DMK.
Foreign investment cap
The PFRDA Bill is crucial as it would provide statutory backing to the pension regulator — PFRDA.
However, the PFRDA Bill 2011, unlike earlier version, does not cover the foreign investment policy for pension sector (including pension funds and central record keeping agency).
The Standing Committee on Finance headed by BJP leader, Mr Yashwant Sinha, had recommended that foreign investment cap of 26 per cent be introduced for the pension sector. It also suggested that this foreign investment cap be part of the Bill.
The Finance Minister, Mr Pranab Mukherjee, had met senior BJP leaders on Monday to discuss the issues around the PFRDA Bill.
A consensus seems to have been reached on the issue of bringing foreign investment limit within the Bill. After this meeting, the Government had listed the PFRDA Bill for Wednesday's list of business in Lok Sabha. But the revised list did not mention it.
The Government may also face some resistance in smooth passage of the Companies Bill, as the Opposition feels the new Bill has proposed significant changes to the legal framework governing the functioning of companies in India.