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TMC may force govt to delay Pension Bill

Last Updated: Wednesday, December 21, 2011 - 16:44

Zeebiz Bureau

New Delhi: The Pension Fund Regulatory and Development Authority Bill, which was scheduled to be tabled in Parliament on Wednesday, is likely to be deferred due to the reservations expressed by Mamata Banerjee's TMC on it.

The Bill was listed in the Lok Sabha business agenda for today.

Owing to serious reservations of TMC, which is a part of the ruling UPA coalition, on the Bill, the govt may delay its tabling in Parliament, sources said.

The govt and the BJP on Monday reached a broad agreement on the Companies Bill and the Pensions Fund Regulatory Development Authority Bill paving way for their passage in this session of Parliament.

Finance Minister Pranab Mukherjee on Monday held a meeting with senior BJP leaders LK Advani, Sushma Swaraj and Yashwant Sinha to discuss these two legislations. Since the Left parties are opposed to them, the BJP's support is crucial.

Sources said the Government agreed to the BJP's demand for ensuring Guarantee Returns in PFRDA. The Standing Committee on Finance, headed by Sinha, had made this recommendation.

It is not clear if the Government has also conceded to BJP's demand for defining the quantum of FDI in PFRDA in the Bill itself instead of bringing it through an Executive decision. Earlier, the BJP was adamant that if this provision is not included, it would oppose the Bill. However, it had later mellowed down its stand.

In August this year, the Standing Committee on Finance headed by Yashwant Sinha had favoured capping foreign investment in the pension sector at 26 per cent and allow such investments to flow into India through a specific provision in the Bill.

Once this Bill is enacted into law, the Pension Fund Regulatory and Development Authority will become a statutory body. This Authority was established in 2003 through an executive order.

First Published: Wednesday, December 21, 2011 - 14:51
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