After chairing the meeting, Deputy chairman of the Planning Commission, Jaswant Singh said, ``The Group has reached a unanimous decision, and it will be conveyed to the Cabinet.''

While the Cabinet had earlier failed to take a decision on the matter, both the Prime Minister as well as the Finance Minister were keen to allow foreign investment to send a positive signal to investors. Yesterday, despite the low market prices, the government also decided to go ahead with the disinvestment for the public sector Concor -- once again, this was aimed at sending signals that the government was on course as far as its programme for economicreforms is concerned.

Today's meeting was attended by Industry Minister Sikander Bakht, Finance Minister Yashwant Sinha, Personnel Minister MR Janardhanan, Surface Transport Minister M Thambidurai. Three others who did not attend were Power Minister PR Kumaramanglam, Commerce Minisiter Ramakrishna Hegde and Petroleum Minister V Ramamurthy -- all of them were out of town.

The Group of Minister's view will now be conveyed to the Cabinet where it will be formally cleared.

When the Cabinet had met last month to discuss the issue of foreign participation, foreign partipation had been opposed. Telecom Minister Sushma Swaraj and HRD Minister M M Joshi were beleived to be among those who had opposed the move. The issue had then been referred to the GoM on insurance.

By allowing foreign stakes in insurance, the Government is keen that the correct signals be sent out to overseas investors. The issue of privatisation of insurance has been hanging fire for over four years now.

The United Front Government hadopened only the helath insurandce sector for private participation. Last year the UF Government almost passed the Insurance Regulatory Authority Bill, but was prevented at the last minute by a turnaround by the BJP. It had demanded a clear statement that foreign companies would not be allowed in at all.

Once it came to power, the BJP changed tack and has opened the entire sector for participation from Indian industry. But it did not specify whether foreign companies would be allowed to pick up equity or not. The insurance sector can also be a great source for funding long-term infrastructure projects.