The Tamil Nadu Government has expressed its disapproval to the Centre allowing foreign direct investment in insurance and pension funds sectors.
Chief Minister J. Jayalalithaa said in a press release: “I strongly oppose these moves as they are detrimental to the future of the common people of this country.”
The UPA Government at the Centre is “unfazed by the sufferings of the common people, small traders and small farmers''.
The Cabinet’s approval “toting these as big-ticket reforms, which would accelerate unprecedented growth and boost a sagging economy, is premature''.
FDI in insurance, pension funds
Increasing FDI from 26 per cent to 49 per cent in the insurance sector and allowing 26 per cent FDI in pension funds sector will happen only after the Pension Fund Regulatory & Development Authority (PFRDA) Bill, 2011, and Insurance Law (Amendment) Bill, 2008, are passed by both the Houses of Parliament. The UPA faces a “number crunch” in the Houses, she said.
Though 26 per cent FDI was permitted in insurance sector “nothing appreciable” came of it. Hiking this to 49 per cent despite a Parliamentary Committee recommendation against it will prove disastrous.
“As to whether they have the right to jeopardise this crucial sector is a debatable issue,” Jayalalithaa said.
Limiting insurance companies’ capital requirement to Rs 50 crore will result in the mushrooming of small companies lacking experience and capability and will be fraught with danger. This will unnecessarily expose our public to risk.
Public sector cos to be hit
FDI in insurance sector will see private insurance companies with totally commercial approach dominating. Public sector companies like LIC, which participate in the developmental process, will suffer and “the developmental process of the nation itself will be adversely and severely affected''.
FDI in pension funds and channelling the domestic savings of the elderly into the highly risky and unpredictable capital market will jeopardise the future of senior citizens.
Keywords: FDI in multi-brand retail, FDI hike in insurance, opening up of FDI in pension sector, UPA Government, UPA's big-ticket reforms, Tamil Nadue Chief Minister,
Comments:
Its just like you are bringing up the cauvery issue to create a diversion for the gross mismanagement in your own state...
It is quite natural that politicians may feel like this..When friendship /collision is strong even bad policies of the govt. become good and when friendship/collision is poor or bad very good reform measures on the part of the govt. may turn to be bad. Chennai's CM also can not be an exception....
Jaya, Your asset reflect your story... Your administration reflect TN situation. You are blaming other.
These kind of habbits does the India suffer.
She was doing nothing
- before construction of nuclear power plant
- other than troubling the Cauvery basin people
Unfourtunate thing is people of this country does not have any options other than these blody political options...
It
is natural that Tamilnadu Chief Minister Dr. J. Jayalalithaa has
expressed strong disapproval of the Centre allowing foreign direct
investment in insurance and pension funds sectors. She has always
been concerned about downtrodden people. In November, 2011, the
Government of India took the hasty, illogical and unsound decision to
allow retail. The decision to allow FDI in retail trade evoked severe
opposition from almost all political parties, traders, farmers and the
public in general. In fact, the Tamilnadu Chief Minister immediately
opposed the decision of the central government to FDI in retail trade.
Now, the Chief Minister has expressed her disapproval to the Centre
allowing foreign direct investment in insurance and pension funds
sectors. She has blamed that the UPA Government at the Centre is unfazed
by the sufferings of the common people, small traders and small
farmers'. Her contention that FDI will lead to the dominance of
private companies the insurance sector.
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