President signs ordinances |
Indian President Pranab Mukherjee on December 26, 2014, signed two key ordinances allowing hike in the FDI cap in the insurance sector and facilitating e-auction of coal blocks. The NDA Government wanted the ordinances issued after failing to get them passed in Parliament. The Coal Mines (Special Provisions) Bill, 2014 was passed by the Lok Sabha but could not be taken up for discussion in the Rajya Sabha, pushing the government to recommend a re-promulgation of the coal ordinance. The insurance amendment bill will allow hiking the FDI cap in the sector from 26 to 49 per cent. The government hopes the increased FDI cap would bring in additional capital inflow of USD 6-8 billion to the insurance sector. The coal ordinance would allow for the e-auction of coal blocks to private companies for captive use, while allowing direct allotment of mines to State and Central Public Sector Enterprises.
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