PM, Left to break ice over dinner

In an apparent bid to mend the strained ties with the Left, Prime Minister Manmohan Singh has invited the latter to a dinner tomorrow.

The move is expected to re-open their channel of communication that has been broken for about five months. It also signalled the government's intention to resume the stalled negotiations with the Left on crucial policy issues.

An indication to this effect came this afternoon when Finance Minister P Chidambaram made a detailed presentation to Left MPs on the proposed reforms in the insurance sector.

The Left leaders present at the meeting included Tapan Sen, Basudev Acharya and Roopchand Pal from the CPI(M), Gurudas Dasgupta from the CPI, and Abani Roy from the RSP.

CPI(M) MP Tapan Sen told Business Standard that the Left MPs' initial reaction was against the proposal for increasing the FDI cap in the insurance sector from 26 to 49 per cent and allowing foreign players in general insurance.

"They (foreign companies) will collect money from Indian soil and therefore will not solve the capital crunch problem," said Sen