CPI (M) today voiced its opposition to the proposal
to raise the cap on foreign direct investment in the
insurance sector and said it had not been consulted
in this regard.
(M) general secretary Prakash Karat said that the position
of his party remained unchanged since 2004 when it had
first opposed any increase in the FDI limit. "In
the first budget of the UPA government in 2004, they
had announced the policy of increasing the FDI cap in
insurance and we had opposed at that time and our stand
CPI (M) against the new insurance bill to raise the
FDI cap in the sector from 26 per cent at present to
49 per cent. The CPI (M), along with its other Left
allies, had earlier stalled the passage of the Banking
Regulation Amendment Act and the pension funds from
being allowed to invest in equities, the Pension Fund
Regulatory and Development Authority Bill, which, it
claims would lead to privatisation of pension funds.
also demanded to know why the financial sector was being
thrown open to foreign capital. "We don't want
the financial sectors to be taken over by foreign finance
capital," he said, giving the prime reason for
the Left opposition.
don't know what they are planning to do now. We have
they are bringing some legislation... There was no consultation
because we have told them we don't agree with it,"