The proposed bill, according to parliamentary affairs minister Madan Lal Khurana, would be the same as approved by the cabinet earlier. As per the indications, the Bill would be introduced in the Lok Sabha on Wednesday or Thursday.

Following the embarrassing public battle over insurance, prime minister Atal Behari Vajpayee is believed to have approached RSS chief Rajju Bhaiya to call off the swadeshi hawks so that the government can fulfill a Cabinet commitment.

The compromise between the party and the government appears to have been reached after Rajju Bhaiya intervened to stave off the impending showdown.

The Cabinet had earlier decided to throw open the insurance sector to the private sector providing for 26 per cent equity for foreign companies and 14 per centequity for FIIs, OCBs and NRIs in the joint ventures.

Although there was no indication of any softening of stand by the Swadeshi Jagaran Manch (SJM) which had spearheaded the protest against opening of insurance sector to foreign companies, BJP president Kushabhau Thakre retracted his earlier statement and promised full support to the government on the issue of foreign equity to the government.

Meanwhile, Khurana said the BJP had started consultations with political parties to evolve a consensus on the bill to ensure its smooth passage.

He said discussions had already been held with the Congress and Khurana himself met Sharad Pawar on the issue. Pawar assured him that the Congress in principle agreed to insurance sector reforms. However, the Congress wanted the government to come out with the bill before firming up its stand on the issue.

Although the government had claimed through last week's storm that the Bill was still being drafted, Khurana stated that a copy has been submitted to the speaker. Itwill be circulated after the prime minister gives the green signal.

BJP vice-president KL Sharma, however, denied that there were any differences within the party on the bill. He felt confident that the party and its allies would vote for the bill.

In a statement circulated at the party's daily briefing in parliament, the BJP president called upon all members of the House belonging to BJP and its allies to fully back the bill when it is introduced and ensure its successful passage.

"The union cabinet has taken a unanimous decision in the matter according to its own best judgement of the compulsions of the economy," he said. Denying reports about differences with the government on the issue, Thakre said a section of the media had given "incorrect slant" to his statement on the bill "to suggest a non-existent confrontation between the government and the party", adding that the government was the best judge of the need for such a bill.

However, he reiterated the need for prior consultations between theparty and the government on such issues to avoid "unnecessary speculations in the media and political circles.

Meanwhile, yet another Sangh Parivar organisation, Laghu Udyog Bharati, joined in government-bashing over insurance saying 40 per cent foreign participation in insurance will tend to increase the interference of foreigners in the country's financial sector.

In a statement, LUB president Vishwa Mittra Bahl said its members will oppose the proposed policy "tooth and nail". This is likely to effect the availability of finance to the SSI sector, especially so when this policy is extended to the banking sector also, he added.