 "The govt steps back on insurance and other ordinances")
The government, in a minority in the RS, believed it could withdraw legislations pending in the Upper House to reintroduce these in the Lok Sabha (LS), where it has a majority. It could then have summoned a joint sitting of Parliament and got the Bills passed through its combined strength in the two Houses, in which case it would have had a majority.
However, to introduce a Bill in the LS, the government had to first withdraw it from the RS. To do that, it needed to take permission of the House. On Tuesday, the Opposition indicated it would challenge the government’s move and seek voting; without the numbers, the government would have lost. So, Finance Minister Arun Jaitley opted to defer the withdrawal.
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The insurance Bill aims to increase foreign investment in the sector from 26 per cent to 49 per cent. The Bill was introduced by the United Progressive Alliance (UPA) government in 2008. Since then, it has been before a standing committee and later, a select committee. Finally, the government had to introduce it as an ordinance. The Bill has undergone copious changes.
Now, the only option the government has is to bend before the Congress (which keeps saying that as insurance liberalisation was a move begun by it, it will support the Bill) and plead with it to help pass the reform measure. The Trinamool Congress and the Left parties are bitterly opposed to the Bill.
The two other pieces of legislation the government has been forced to put on the back burner are the Coal Mines (special provisions) Bill and the Motor Vehicles (amendment) Bill, both ordinances that have to be brought as Bills within six weeks of Parliament meeting. As of now, it isn’t clear how the government will address these.
The Communist Party of India (Marxist)’s Sitaram Yechury said, “The CPI(M) is directly charging the government with de-nationalising the coal sector by bringing in the coal ordinance.”
While announcing the government had deferred a decision to withdraw the legislation in the RS, Arun Jaitley sought to address the apprehensions of investors about a sector ruled by the rickety policy infrastructure of an ordinance.
“The law is in place and what the RS is clinging to is an infructuous law…the law that existed previously is infructuous. It has been replaced by an ordinance. We were trying to change the law, but the Opposition seems to have a great attachment to infructuous laws. So, we are deferring our proposal to withdraw the law,” Jaitley said
Refuting the charge, Congress spokesperson Randeep Surjewala said, “If indeed the Bills had become infructuous, as Jaitley claims, what was the hurry in listing it on the first effective day of working of the RS? When Jaitley saw the Opposition was united and even the motion for withdrawal was going to be defeated, he chose an escapist route by calling it infructuous.” Surjewala pointed out a division was being sought, which would have embarrassed the government.
The dissonance between the government and the Opposition was clear, with the Congress accusing the Centre of trying to "bypass" Parliament and bring in legislation through the ordinance route. Caught on the back foot over the land acquisition ordinance, Jaitley was compelled to assure the House the government would consult all parties on the issue and take their concerns into consideration.
When Congress leader Anand Sharma accused the government, “You expect Parliament to rubberstamp your ordinances...you don't send anything to the standing committee,” Jaitley shot back that of the 636 ordinances promulgated so far, at least 80 per cent had been under the Congress rule. He added 70 of these had been issued during the Nehru era.
House proceedings could not be taken up in the morning, as members across party lines sought the issue be taken up immediately and the government withdraw the ordinances until these were discussed.
Janata Dal (United) leader Sharad Yadav attacked the land ordinance, saying: “You are trying to bulldoze with the strength of your numbers. Remember, agriculture is the biggest industry in the country.” He was supported by the Trinamool Congress, the Samajwadi Party, the Left parties and the Congress.
Jaitley, in turn, accused the Opposition of being opposed to the construction of roads and schools in rural areas, housing for the poor, etc, to which former rural development minister Jairam Ramesh categorically stated the government was trying to mislead the House and the people.
An angry Jaitley replied, “The land Bill is being tabled in the LS today (Tuesday); you cannot prevent the LS from doing that.”