In another modification to the IRA Bill presented in the winter session of parliament, it was decided that domestic companies would have to bring down their equity holding to 26 per cent -- the same level as foreign companies -- after 10 years. The IRA Bill says that parity in equity holding between the foreign and Indian joint-venture partners must be restored after six years.

In its third major recommendation, the committee has decided that the initial capital forcompanies in the life sector be Rs 200 crore. The initial capital for reinsurance companies has also been decided to be pegged at Rs 200 crore. The initial capital for general insurance companies has been retained at the level of Rs 100 crore as suggested by the Malhotra Committee on Insurance Reforms in 1994.

Speaking to newspersons after the meeting, the committee's chairman and Congress MP Murli Deora said that the report would be placed in parliament before the mid-session recess starting March 18. Asked about the number of MPs expected to put in dissent notes, he said, ``Not more than four members will put in dissent notes.''

After the standing committee report is presented in parliament, the modifications will be incorporated in a revised IRA Bill. The new bill will then have to pass muster on the floor of the Lok Sabha. A senior finance ministry official said that if the report was placed in the house before the recess, the new bill could be placed in the Lok Sabha before the budget session closesin mid-May.

The Government had decided to refer the IRA Bill to the committee in the winter session. When the bill was placed in the Lok Sabha, there was a furore in the house about opening up the insurance sector to foreign companies.

Left parties unhappy

MPs belonging to the Left parties in the Standing Committee on Finance are unhappy with the panel's decision to clear the IRA Bill for opening up the insurance sector. The MPs are expected to put in dissent notes. The committee will accept dissenting notes till March 16.

Three MPs, all having affiliations to left parties -- Gurudas Dasgupta, Rupchand Pal, and V Radhakrishnan -- walked out of the meeting in a huff. Dasgupta was the first to leave after barely 45 minutes of the meeting, which lasted a little over two hours. Speaking to The Financial Express, Dasgupta dejectedly said that the recommendations did not change the bill significantly. Pal said: ``The BJP and Congress MPs in the committee have bulldozed their decision aboutokaying the bill. The will of the dissenting members in the committee has not been taken into account.'' The committee, which summoned industry associations to depose before it, ``did not call any representative from the mass of common policy-holders,'' he said.

AIADMK MP RK Kumar and independent MP Satish Keswani, who accompanied Deora after the meeting ended, looked pleased with the modifications in the bill. Thursday's meeting was attended by only 17 MPs. The committee has a strength of 45 MPs -- 30 from the Lok Sabha and 15 from the Rajya Sabha.

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