If the second session of United Progressive Alliance (UPA) Government saw a policy paralysis with Parliament work suffering, the first winter session of National Democratic Alliance (NDA) too saw an unproductive term with the promulgation of Ordinance in coal block auction and foreign investment in insurance sector. The government has given strong signals that it is committed to pace up the speed of economic activity. The auction of coal blocks and increase in foreign investment cap in insurance sector were opposed by opposition on one or the other ground. The pathetic power scenario prevailing in the country has further worsened after the long delay in auctioning of coal blocks. The logjam over the issue highlights policy inconsistency. Urgent measures are needed to keep the power sector alive and the Ordinance provides ample grounds for forward movement. The processing of auctioning of coal blocks was installed after a Supreme Court verdict in September ordering cessation of mining in some coal blocks by the end of the ongoing financial year. Taking the Ordinance route undermines the legislature. Moreover it is moot point if a mere Ordinance can engender confidence among the investors in India. The full potential of reforms will be realised only when the legislation is debated in Parliament and approved there. The Coal Mine Bill was passed in Lok Sabha but still it is pending in Rajya Sabha. The net result in Rajya Sabha disruption is that the government’s legislative agenda remained affected. The present government with absolute majority can do better as compared to coalition UPA government which remained paralysed on policy front. It can also pursue the opposition and take them along to reach a consensus on economic and growth targeted policies so that functioning of the Parliament is not hampered and neither the agenda is hijacked by sectarian forces. What investors would look forward is a stable policy or laws passed by Parliament. Unless both Houses pass the pending Bills, the Ordinance will cease to operate on the expiry of six weeks from the reassembly of Parliament for the Budget session. This means government effectively has three months to get the insurance legislation passed.
