New Delhi, June 7
Strong opposition from its UPA ally Trinamool Congress chief Mamata Banerjee over certain provisions in the Pension Fund Regulatory Development Authority (PFRDA) Bill today forced the Union Cabinet to skip discussion over the amendments to be made in the Bill. Sources said that the Bill was taken up but a discussion over it was deferred.

The government has been wanting to make the amendments in the PFRDA Bill as presented in Parliament in the budget Session in an effort to placate the opposition parties, especially the BJP and the Left Parties, which had put up strong resistance against the provisions when it was presented.

The three changes proposed in the bill are - contributors can withdraw funds from the pension scheme in case of an emergency, subscribers will be given a minimal assured return for the investment in their funds and there will be a 26 per cent cap on the FDI. However, the Congress-led UPA government is also facing opposition to the provisions of the Bill from its ally the Trinamool Congress (TMC).

Railway Minister Mukul Roy, who represents TMC in the UPA government, did not speak on the issue during the Cabinet meeting, sources said.

Reports said that had the amendments to the Bill been brought for discussion, he would have opposed them.

The Cabinet was scheduled to approve changes in the PFRDA Bill in light of the recommendations of the Standing Committee on Finance, to pave way for passage of the bill in Monsoon session of Parliament next month.

The Bill seeks to open the pension sector to private sector and foreign investment.

The PFRDA Bill provides for establishment of a statutory authority to undertake promotional, developmental and regulatory functions in respect to pension funds. Interim PFRDA is functioning since 2003 through an executive order. Reports suggested that with the TMC still dead opposed to it, the government decided not to bring out an issue that would expose fissures in its ranks just ahead of the crucial Presidential elections to be held next month.

Sources said that it was the UPA’s political compulsion again which forced the discussion on the bill to be deferred.