Both sides jousted, with parliamentary affairs minister Madan Lal Khurana declaring in parliament that the Insurance Regulatory Authority bill will be introduced in parliament next week. And the SJM declared that it is `totally against foreign equity in insurance.'

The division within the BJP on the issue grew deeper on Friday with some members of parliament of the party starting a signature campaign asking the prime minister to drop the foreign equity component in the IRA bill. Sources said that, so far, 80 MPs have signed.

Given the volatile dynamics of the tug-of-war between the two sides, the government is expected to introduce the bill without the contentious issue of foreign equity.According to a senior government official, foreign companies can be given equity at a later stage through a government order.

The Congress Working Committee (CWC) has so far not taken any decision on the issue. While the Congress manifesto says that 49 per cent foreign equity should be allowed in the insurance sector, party sources said it would not miss an opportunity to embarrass the government on the issue should the foreign equity component be delinked from the IRA bill in parliament.

Speaking to The Financial Express, SJM organising secretary Murlidhar Rao said, "There is no question of a compromise on the issue, we are totally against the entry of foreign companies in insurance."

"The bill is not yet ready and has not been tabled in parliament. Once this is done we shall intensify our protest," he said. He warned that if the government goes ahead and passes the bill, "the SJM will take to the streets."

Rao, who was scheduled to leave the capital on Friday evening postponed his visit by aday to confer with the government. In the afternoon there was a meeting between the Sangh parivar members and the government. Human resources minister Murli Manohar Joshi lent weight to the Sangh parivar, arguing against foreign equity.

Rao negated any possibility of arriving at a compromise formula with the government. He is leaving the capital on Saturday and is expected to be back after 10 days.

Dattopant Thengdi, the principal force behind the swadeshi forum in the Sangh parivar, proceeded to Rajkot on Friday evening en route to Nagpur where the Sangh Pariwar is scheduled to meet in the middle of the month. He is expected back in the capital on December 22, a day before the winter session ends. Thengdi had a stormy meeting with finance minister Yashwant Sinha and Guruswamy on Thursday. He is believed to have expressed inability to stay in the capital for `a few more days to settle the issue'. According to a senior government official, "It remains to be seen whether the government will go ahead withthe bill when none of the top brass of the pariwar are in the capital."

The SJM agrees that at present the insurance sector which is a monopoly of the public sector is `not very efficient'. It is of the view that the sector should be made more competitive by opening the industry only to domestic companies.