//There are serious differences in Parliament on the insurance sector ~ the reason why the insurance bill has been held up for nearly six years. The BJP ironically was the vociferous opponent in the last Lok Sabha. The history of the LIC since 1956, when life insurance was nationalized by paying just Rs 5 crore to the private insurance companies has been a gold mine to the Union Government. LIC has given to the Central government hefty amounts yearly (2008-09 to 2012-13) of Rs. 929.12 crore, 1030.92 crore, 1137.62 crore, 1281.23 crore, 1436.38 crore respectively. It also donated Rs. 7000 crore during the 7th Plan. It defies logic why in such a situation the central government should welcome FDI resulting in loss to LIC which will have to share premiums paid by Indian citizens to foreigners, unless it is a commitment given by Prime Minister Modi on his US visit. So desperate was the attempt to woo foreign investors that when their reaction was sought, it was on expected lines ~ they would wait for regular law to be passed before risking their investment. Yet the Centre came out with a convoluted version in the press that even if the ordinance is not approved by Parliament, enhanced FDI made during the ordinance period would remain valid and irreversible. This proposition is legally unsound because unless Parliament passes the law by endorsing the ordinance, all actions under the ordinance would be unconstitutional.// //The government has been aware that for the BJP to reopen the nationalization debate in Parliament would make it run for cover; it could even be charged with serving the interest of those who had donated to its election fund.. The ordinance is a half-clever, sly trick to bring in the private sector in coal mining after a lapse of over 40 years. Those associated with the coal trade say that the ordinance explicitly allows private-public joint ventures and permits commercial mining by state government companies, indeed activities that the Supreme Court had ruled were illegal. This will benefit the Modi government’s favourite companies which are already partnered by state government companies which lack mining expertise. This is an indirect method to scuttle the Coal Mining Nationalization Law.// //No, Mr President Mukherjee. Sir, Your Excellency seeking clarification from three Central Ministers was only an obligation under the Constitution when issuing the ordinance. The real stakeholders, the millions of poor farmers, needed to be consulted and heard through their well-established representatives prior to issuing the ordinance especially when these organizations had also represented to you seeking a meeting. // //The Supreme Court had observed in 1987 that the power to bring in an ordinance “is in the nature of emergency power to take action when the legislature is not in session. This power is to be used to meet an extraordinary situation and it cannot be allowed to be perverted to serve political ends”.//
Posted on: Fri, 09 Jan 2015 21:20:43 +0000
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