Not opposed to FDI in pension, insurance: BJP

New Delhi:In the wake of reforms announcedby the government in insurance and pension sectors, BJP todaysaid while it is not opposed to more FDI in these areascertain caveats and conditions should be met to "safeguard theinterest of the people".

However, BJP remained ambivalent on whether it willsupport these measures in Parliament, saying it would firstlike to see the "fine print" of the reforms.

On the issue of FDI in insurance sector, BJP spokespersonPrakash Javadekar said the Parliamentary Standing Committee onFinance headed by Yashwant Sinha had gone into the issue andrecommended 26 percent FDI.

[caption id="attachment_479937" align="alignleft" width="380"] Yashwant Sinha will head a panel that will review the new reforms decisions.[/caption]

"Sinha was the first one to propose 49 percent FDI ininsurance ten years ago. That time Congress had opposed itand since we wanted to bring a consensus, we agreed to 26 percent. There are 16 members from UPA in the Standing Committeeon Finance and unanimously they have said it should be 26 percent," Javadekar said.

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He alleged the government has behaved in an "uncertainmanner" on this issue.

Clarifying BJP's stand on the issue, Javadekar said"we are not opposed to FDI in insurance and pensions as wecreated it. Our concern is that many foreign companies havealready invested more than 26 percent through debenture-typeinvestments. Now, that will be converted into equity so no new

FDI will come in."

BJP's other concern is that these companies have notpenetrated the rural market as they were expected to and whyIPO has not been allowed.On pension, BJP maintained the government ensures"sovereign guarantee of the pension fund for minimum returnsof 8.5 percent", protection of labour interest and securityof the pension fund itself.

PTI