Finance minister P Chidambaram met insurers recently to discuss steps to channelise their long-term savings into infrastructure sector and other issues relating to the sector. “For that what changes are to be made in the regulations by the government of India or by Income-Tax department…everything has been looked at,” Financial Services secretary DK Mittal said after the meeting, adding that no decision was taken and another meeting would be held shortly.
India needs about a trillion-dollar investment in the infrastructure sector during the 12th Five-Year Plan (2012-17).
“It was basically to understand, as a part of a series of meetings that the finance minister is holding,” said Mittal.
IRDA’s chairman J Hari Narayan said that the regulator is already working towards easing the norms of investment for insurance firms.
“There is a need to revisit investment norms for insurance companies. We will look at revising investment regulations over the next month,” he said.
Finance ministry is also examining the option of letting life insurance companies invest up to 50% of their debts investments in AA-rated
