India’s cabinet has approved sweeping changes to atomic energy
laws and fully opened the insurance sector to foreign investors, tw
o government sources said on Friday, key policy moves aimed at attracti
ng billions of dollars in two critical sectors.
India, which plans to expand nuclear power capacity 12-fold
by 2047, is relaxing rules to end a decades-old state monopoly and
overcome a stringent liability provision to allow private participation a
nd attract foreign technology suppliers.
The changes in the nuclear sector are part of the push to boost n
uclear capacity to 100 gigawatts by 2047 as India looks to cut coal de
pendence and meet climate commitments. In the insurance sector, the
government has proposed removing the cap on foreign ownership
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of Indian insurance companies, currently set at 74%.
To qualify for 100% foreign direct investment, at least one of a co
mpany’s chair, managing
director or chief executive would have to be an Indian resident, a third government source said.
The government has also dropped an earlier proposal for an u
nified license for insurance companies, the source said.
A unified, or composite, license would have allowed insurers
to provide life, general and health insurance under a single entity.
Currently, life insurers cannot sell products such as health insura
nce, while general insurers can only sell products ranging from health to marine.
The government felt that Indian insurance companies are n
ot yet equipped to have a composite license regime, the source said.
Both changes to laws are listed for approval in the ongoing winter session of parliament.
(Reporting by Sarita Chaganti Singh and Nikunj Ohri. Writing by Shi
lpa Jamkhandikar. Editing by YP Rajesh and Mark Potter)