Govt considers Ordinances to push reforms

Obscurantism and obstruction bunged in a monkey wrench winding down the Winter Session in Parliament with vital unfinished business. Undeterred by the debacle in Parliament, where a bellicose Opposition stalled key reforms Bills, the government appears all set to adopt the Ordinance route to push reforms in insurance and coal sectors.

A hint about the insurance sector was given by minister of state for finance Jayant Sinha on Tuesday when he said that the government has to consider all possibilities. "We need to ensure that the product and services (related to insurance) are available to all the people of India," he said. When asked whether the government would look at the Ordinance route, Sinha said, "We will have to consider all possibilities right now because the fact is that the country needs more investment in the insurance sector." The government may move with alacrity on the issue and try and move the Ordinance as early as this week itself.

The Insurance Laws (Amendment) Bill, 2008, could not be taken up for discussion despite being approved by the Select Committee of the Rajya Sabha because of the uproar over the conversion controversy and other issues.

The Coal Mines (Special Provisions) Bill, 2014, has already been approved by the Lok Sabha but could make no progress in the Upper House. The Insurance Bill, pending since 2008 in the Rajya Sabha, seeks to increase the composite foreign investment limit in insurance companies to 49 per cent from 26 per cent.

The passage of the Coal Bill is essential as it would pave way for auctioning of coal mines cancelled by the Supreme Court recently. Similarly, the Land Acquisition (Amendment) Bill also offers no easy way out.

"Since the Land Acquisition Bill was passed by Parliament, amendments to that Act has to be cleared by Parliament again and an Ordinance route cannot be taken," said sources. The next move is to convince the President to approve the same. Article 123 of the Constitution states that he can issue an Ordinance if he is "satisfied that circumstances exist which render it necessary for him to take immediate action".