Pranab signs ordinances on insurance, coal

Tribune News Service
New Delhi, December 26
President Pranab Mukherjee today approved the two ordinances promulgated by the BJP-led NDA government to permit raising of Foreign Direct Investment (FDI) limit in insurance sector and push the allocation of coal mines. 

Rashtrapati Bhavan spokesman Venu Rajamony said the President gave his assent to the two ordinances today. The ordinances were necessitated as the government was unable to get the Bills — one to replace the earlier ordinance on allocation of cancelled coal mines and the insurance laws amendment permitting hiking FDI limit from 26 per cent to 49 per cent — passed in the just concluded Winter Session of Parliament.

A day later the government brought in these two ordinances that were criticised by the Opposition, including the Congress. The CPM urged the President not to grant approval to them. Several trade unions, too, raised their voice against the move.

While announcing the decision to bring ordinances, Finance Minister Arun Jaitley hoped the raising of FDI limits, pending since 2008, would result in capital inflow of up to $ 8 billion.