With just two working days left for the current Rajya Sabha session, the Centre has indicated that it may take the ordinance route to hike the foreign direct investment (FDI) limit in the insurance sector to 49 per cent.
The BJP-led National Democratic Alliance’s minority status in the Upper House is a hurdle for smooth passage of the Bill.
“In case the Insurance Bill is not passed in this session, the ordinance route can’t be ruled out,” a top government official said here on Thursday. This indication came after the Rajya Sabha was adjourned without transacting any major business. Thursday was the eighth successive day of disruption as the Opposition demanded a statement from Prime Minister Narendra Modi on the religious conversion controversy.
An ordinance has the same powers as an Act. Based on the urgency, it can be promulgated between two sessions of Parliament. However, the government needs to get it converted into an Act in the next session.
It is believed that the Centre wants to put in place a statutory structure for foreign equity before US President Barack Obama’s visit next month. Ordinances have been used before. Most recently, the UPA Government promulgated ordinances to empower SEBI to act against Ponzi and illegal deposit schemes. These became an Act in August.
Normally, both Houses of Parliament do not take up any government legislative business on Friday as it is reserved for Private Members’ Bills. This leaves just two working days, December 22 and 23, in the ongoing session.
The Insurance Bill has been pending in the Rajya Sabha for the last eight years. In the last session, it was referred to a Select Committee of the Rajya Sabha, which submitted its report on December 10 and the Cabinet nod for the amendments came the same day.