Reforms engine gathers steam

CABINET APPROVES BILL TO HIKE INSURANCE FDI TO 100%

- FE BUREAU

CLOSE ON THE heels of Prime Minister Narendra Modi's assertion that the country is in a full-fledged “reform express” phase, the Union Cabinet on Friday approved a host of legislative and administrative measures to give a push to different sectors of the economy.

The Cabinet decisions covered coal, civil nuclear energy and the insurance sector.

A Bill to raise the foreign direct investment (FDI) limit in insurance companies from 74% to 100% got the nod, in what could unlock the full potential of the sector, which is anticipated to grow at 7% annually over the next five years.

The Bill, to be tabled in Parliament next week, is expected to attract stable and sustained foreign investments, enhance competition, facilitate technology transfer, and significantly improve insurance penetration in the country.

ADDITIONALLY, THE BILL aims to relax current restrictions on the repatriation of dividends and key management personnel for foreignowned firms, thereby boosting ease of doing business.However, at least one among the chairman, managing director and the CEO must be an Indian citizen.

The Cabinet also approved the Atomic Energy Bill, 2025, or the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, allowing private participants in the nuclear power sector.

The move comes amid the country's plan to add 100 gigawatt of nuclear capacity by 2047.

Further, the Cabinet approved a policy for auction of coal for "any industrial use" and exports. This will allow allocation of coal linkages on auction basis on long-term for any industrial use and exports.