The Hindu : National : BJP to oppose FDI hikes

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Thursday, Jul 15, 2004

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National

BJP to oppose FDI hikes

By Our Special Correspondent

NEW DELHI, JULY 14. The principal Opposition in the Lok Sabha, the Bhartiya Janata Party, today announced that it would oppose the proposed increase in foreign direct investment (FDI) limits in insurance, civil aviation and telecom sectors.

The Union Finance Minister, P. Chidambaram, had announced in the budget that the FDI limit in telecom would be raised to 74 per cent and 49 per cent in civil aviation and insurance.

However, the Left parties supporting the Manmohan Singh Government from outside have voiced their opposition to the move.

Asked about the Opposition stand on the issue, the former Prime Minister, Atal Behari Vajpayee, told presspersons after a meeting of the National Democratic Alliance leaders: "Hum Virodh Karenge (we will oppose it)."

The NDA meeting had been convened to discuss the FDI issue and the developments in Punjab, which has unilaterally scrapped all water sharing agreements with other States.

On the Punjab issue, Mr. Vajpayee said it should be resolved peacefully and through "mutual cooperation" keeping the national interest supreme.

The Leader of the Opposition in the Lok Sabha, L.K. Advani, the NDA convener, George Fernandes, the Leader of the Opposition in the Rajya Sabha, Jaswant Singh, and Akali Dal (Badal) leaders, including S.S. Dhindsa, were among those who attended the meeting.

While the Government can raise the FDI limits in telecom and civil aviation through an executive order, it would have to get the Insurance Regulatory and Development Authority (IRDA) Act amended in Parliament to raise the FDI limit.

But without the support of the Left parties and the NDA, the Government would find it difficult to get the amendment through.

"Let the Government face the music," some BJP leaders said today.

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