The UPA 2 headed by weakest Prime Minister of India, Dr. Manmohan Singh has found his government in Paralysis yet again with the exposing of Largest Ever Natural Resources Loot in the World – The Great Indian Coal Allocation Scam. Out channel checks suggest that their are some extremely key bills pending in the Parliament and now that it has come to standstill, Reforms are unlikely to happen as expected when P. Chidambaram took charge of Finance Ministry.
Which are the Key Economic Reforms Bill Pending before Parliament
The Land Acquisition, Rehabilitation and Resettlement Bill, 2011 – Compensation for owners of acquired land shall be 4 times the market value in case of rural areas and twice in case of urban areas. In case of acquisition of land by private companies or PPPs, consent of 80% of the population displaced shall be required.
The Pension Fund Regulatory and Development Authority Bill 2011 – The bill seeks to give statutory powers to PFRDA. Under the New Pension System (NPS), all Central Government Employees who joined after January 2004 shall have a “defined contribution” pension scheme. Every subscriber shall have an individual pension account portable across job changes. The subscribers shall choose fund managers and schemes to manage their pension wealth, and shall have the option of switching schemes and fund managers
The Banking Laws (Ammendment) Bill, 2011 – Seeks to remove the existing restriction on voting rights – currently limited to 1% and 10% of total voting rights respectively in nationalised banks and all other banks.
The Insurance Laws (Ammendment) Bill, 2011 – Seeks to allow foreign investors to hold up to 49% in an Indian Insurance company. Cancels the requirement of IRDA Act that Indian promoters should reduce their stake in insurance companies to 26% over a period of 10 years.
The Companies Bill 2011 – Mandatory CSR expenditure for large companies
The Mines and Minerals (Development and Regulation) Bill 2011 – Mining lease holder to pay specified amount each year to District Mineral Foundation equivalent to 26% of profit in case of coal and lignite and equal to royalty paid for all other major minerals. Mining companies to allot at least 1 share at par to each member of a family affected by mining operations.
Adding to the woes is the lack of will to take reforms forward and a biased social schemes of the Government will put Indian GDP under Risk and widening Fiscal Deficit.