Lok Sabha approves Bill to raise capital of Exim Bank

The Lok Sabha has given its nod for a Bill to enhance the authorised capital of Exim Bank of India from the existing Rs 2,000 crore to Rs 10,000 crore.

This Bill — Export Import Bank of India (Amendment) Bill, 2011 — was passed after Mr Namo Narain Meena, Minister of State for Finance, assured the Lower House that supremacy of Parliament was not being diluted and that Members of Parliament would have a say in future capital enhancements of Exim Bank.

“Capital infusion is made through Budget provision. It will have to come to you for approval,” Mr Meena said, responding to opposition members' concern over an open-ended provision in the Bill.

The Bill seeks to empower the Centre to raise the amount of authorised capital of Exim Bank from time to time through executive orders. Opposition parties criticised the UPA Government for its increasing tendency to bypass Parliament for taking crucial economic decisions.

Recently, in the case of Life Insurance Corporation, the Centre had moved a similar provision whereby it would have the powers to increase capital from time to time through executive orders. However, with the Left parties opposing such a move, the Centre modified its proposal and agreed to LIC Act amendment every time its capital needed to be increased.

krsrivats@thehindu.co.in