Parliament Diary

The Insurance Amendment Bill, 2021 was taken up for discussion and passing in Rajya Sabha today. During the debate, several Members demanded that the Bill be sent to a Standing Committee. First announced in the Budget speech this year, the Bill increases the FDI limit in Indian insurance companies from 49% to 74%. 

Earlier in the day, the Minister of Road Transport and Highways made a statement in Parliament outlining the ‘Vehicle Scrapping Policy’. Also announced in the 2021 Budget speech, the policy will allow voluntary vehicle scrapping in order to phase out old and unfit vehicles and encourage fuel-efficient vehicles. 

Under the policy, if a vehicle fails a fitness test or renewal of its registration certificate fails, the vehicle will be declared to have reached its end of life and will be scrapped. The Minister listed three main benefits of the policy: the scrapping would lead to 40% cheaper auto components, fuel efficiency would result in lower oil imports, the purchase of new vehicles would lead to increased GST collection of Rs 30,000 crore - Rs.40,000 crore. India currently has 51 lakh light motor vehicles older than 20 years and 34 lakh LMVs older than 15 years.

The Minister added that the Draft Policy will soon be circulated for public comments.

In Lok Sabha, the second batch of Supplementary Demands for Grants 2020-21 was discussed and passed. 

Proceedings in both Houses were ongoing at the time of Uploading this note.