Protests fail to stop coal, insurance ordinances

The NDA government had recommended promulgation of ordinances on coal and insurance sector reforms after failing to get them passed in Parliament.

The decision on taking the ordinance route was taken by the Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday.

Within hours of the Cabinet decision, the CPI(M) had urged President Pranab Mukherjee not to sign the ordinances.

In a letter to the President, CPI(M) leader in the Rajya Sabha Sitaram Yechury contended that since a select committee of the Rajya Sabha had scrutinised the Insurance Bill and had tabled its report, the draft legislation “remains the property of the House on which a decision is pending.”

Mr. Yechury also said that 13 of the 16 Bills taken up by the Lok Sabha in the Winter Session were passed without being referred to parliamentary standing committees.

The Congress, too, objected to the government’s ordinance route, accusing it of “subverting and weakening” institutions. Party spokesperson Shakeel Ahmad said the party would oppose the “Ordinance Raj.”

The government hopes the increased FDI cap would bring in additional capital inflow of $6 to 8 billion to the insurance sector.

While the Insurance Laws Amendment Bill 2008 had been approved by the Select Committee of the Rajya Sabha, it could not be taken up for discussion in Parliament owing to pandemonium over conversion row, among other issues.

The coal ordinance would allow for the e-auction of coal blocks to private companies for captive use, while allowing direct allotment of mines to State and central Public Sector Enterprises.