Finance ministry to rejig investment norms for insurers to tap infra funds

The finance ministry is considering relaxing investment norms for the insurance sector in order to help insurance companies find more funds for the infrastructure sector, secretary, financial services, D K Mittal said today.

He was speaking to reporters after finance minister P Chidambaram held a meeting with heads of state-run insurance companies.

During talks with the finance minister, Mittal said, the state-run insurers have sought relaxation in investment norms to help the sector boost premiums.

Mittal said the meeting discussed the issue of channelising investment into productive sectors, particularly the infrastructure sector.

''For that what changes are to be made in the regulations by the government of India or by the income tax department everything has been looked at,'' Mittal said.

''This meeting was not for taking decisions. It was basically for understanding, as a part of a series of meetings that the finance minister (P Chidambaram) is holding with different groups, key groups, what we can do to prop up the economy,'' Mittal added.