President Pranab Mukherjee today signed two ordinances, one on insurance laws and the other on e-auction of coal blocks. The ordinances were recommended by the Cabinet on Wednesday. The ordinance on insurance paves the way for additional foreign investment in the sector.

The Insurance Amendment Bill could not be taken up for discussion in Parliament due to disruption of proceedings though it was approved by the Select Committee of the Rajya Sabha.The Coal ordinance facilitates e – auction of coal mines which were deallocated by the Supreme Court.

The re-promulgation of Coal Mines ordinance was necessitated as it could not be passed in the Rajya Sabha though it was cleared by the Lok Sabha. The ordinance on insurance laws hikes the Foreign Direct Investment cap in the insurance sector from 26 to 49 per cent.

The proposal was pending since 2008. It is expected to attract capital inflow of 6 to 8 billion dollars. The ordinance on coal mines will allow the government for e- auctioning of all 204 coal blocks which were cancelled by the government following Supreme Court's order. The revenue generated through the auction will directly go to the States where these mines are located and Jharkhand, Chhattisgarh, Odisha and West Bengal will be benefited the most. Ordinances demonstrate the firm commitment and determination of the NDA government to economic reforms.