After its key reform bills were blocked in Rajya Sabha, thanks to the religious conversion row, the Narendra Modi government has given the nod to bring ordinances to undertake the reform process in Coal and Insurance. The Cabinet also approved opening medical devices sector to foreign investment.
The Union Cabinet headed by PM Narendra Modi, approved promulgation of the Ordinance on Insurance Bill, re-promulgation of the Coal Ordinance and allowing 100% FDI in medical devices in the pharmaceutical sector.
Finance Minister Arun Jaitley expressed confidence that raising the cap of FDI in Insurance to 49%, will result in a capital inflow of US$ 6-8 billion. “The Ordinance demonstrates the firm commitment and determination of this government to reforms. It also announces to the rest of the world including investors that this country can no longer wait even if one of the houses of Parliament waits indefinitely to take up its agenda,” Jaitley said.
The re-promulgation of ordinance on coal will facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. On FDI policy liberalisation in the pharma sector where 100% foreign investment is permitted, Jaitley said within the same category, a distinct new sub category has been carved out with regard to medical devices, which are installed inside the human body.