Date:23/12/2008 URL: http://www.thehindu.com/2008/12/23/stories/2008122360811100.htm

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Clarify stand: BJP asks Centre

Neena Vyas

NEW DELHI: The Bharatiya Janata Party on Monday charged the Congress with trying to increase the limit of foreign direct investment (FDI) in the insurance sector from 26 per cent to 49 per cent afterit had opposed such a move by the previous National Democratic Alliance government and insisted on a cap of 26 per cent.

The BJP parliamentary party spokesperson Shahnawaz Husain was referring to the Bill introduced in the Rajya Sabha for a change in the FDI cap. The BJP would give its view after the government clarified its position, he added.

The party was of the view that the “timing” of this move was not correct. With several countries in recession and the impact of the financial global meltdown being felt everywhere, there would be no FDI inflow into India in the insurance or any other sector. He also said some private foreign companies which entered the insurance sector earlier in partnership with the Indian private sector collapsed. That collapse was manageable only because of the 26 per cent cap on FDI.