Okay with the pension, but does not allow insurance Bill pass: Yashwant Sinha

Former Finance Minister Yashwant Sinha said today that the BJP will not allow pension pass in Parliament.

Sinha told CNBC-TV18 that no agreement has been reached between his party and the Government of the United Progressive Alliance (UPA) to support the Bill to raise the limit of foreign direct investment (FDI) in the insurance sector to 49 per cent. He said the BJP was stuck in his previously stated view that the Government should comply with FDI Cap 26 percent, as suggested by the Parliament's Standing Committee on finance (which he chairs).

Sinha said that the party said Finance Minister P Chidambaram it should not force the insurance Bill in this session of Parliament, the opposition would not allow him to pass.  "We have no problems with the Bill. But, the insurance Bill in its current form is not acceptable, "said Sinha.

Yashwant Sinha. AFP

Finance Minister P Chidambaram met Sushma Swaraj, Arun Jaitely and Sinha last week to try and get support for insurance and retirement accounts. "At the meeting, Chidambaram clearly said there is no way to get the insurance Bill passed in this session of Parliament. We do not want to deal with the Government, Sinha said.

BJP leader also said that the acquisition of land and the food bill will have disastrous consequences for the markets, if implemented.  "Food security is best left to the States," he added.

Sinha said that the Government and the RBI should not compete in the market to defend the rupiah.  The rupee fell to a record intraday low of 61.80 against the dollar yesterday, but erased all of the losses to end with a gain of 11 paise to 60.77 after RBI is believed to have strongly intervened in the Forex market.

He also pointed out that the recent steps by the Government and the RBI to maintain rupee will cause collateral damage. "Balance of payments crisis is most disturbing."The growth will be less than 5 percent in fiscal ' 14, "he said.