NEW DELHI: In a breakthrough for the government's efforts to push through reforms legislations, Congress has agreed to support passage of the insurance bill in Rajya Sabha which seeks to raise the FDI cap from the existing 26 to 49% on Thursday.

Sources in both government and Congress confirmed that the two sides have reached an understanding which should lead to early enactment of the Insurance Laws Amendment Bill, bringing to an end an exercise which began under UPA-1.

The improved prospects for the reforms legislation which had appeared stuck came amid indications that the government's effort to move its legislative agenda may finally be making some headway. On Wednesday, it succeeded in thwarting the attempt to put two reforms legislations — the Mines and Minerals (Development and Regulation) Amendment Bill, 2015, and the Coal Mines (Special Provisions) Bill, 2015 — into the deep freezer of select committees for greater scrutiny.

While the two bills will be sent to select committees, the government succeeded in ensuring that the two panels are instructed to finish their job by March 18, a crucial timeline because it will leave the government a window to seek passage of the two bills before Parliament goes into a month-long recess two days later. There is also the option of the recess being put off by a day but the government is yet to take a call.

Besides the fixed timeline — a big victory for the government considering that some select committees have taken as long as a couple of years to finish their job - the government's objective of a swift conclusion will be helped by the fact that they will be led by BJP members, Bhupender Yadav and Anil Madhav Dave. The composition also appears to be suitable with sympathetic Independents like Rajiv Chandrashekhar and Parimal Natwani finding seats along with representatives of non-aligned parties.

Parliamentary affairs minister M Venkaiah Naidu attributed the breakthrough to "cooperation" from opposition parties, but sources said the progress was facilitated by waning resistance from regional parties like BJD, Trinamool, AIADMK, SP and BSP, who occupy the non-aligned land. Both Trinamool and BJD favour early passage of coal mines bill, while SP, BSP and JD(U) backed the idea that fixed timelines were assigned to the two select committees.

The Motor Vehicles Amendment Bill was adopted by Rajya Sabha and should sail through Lok Sabha, given BJP's majority.

Passage of the land bill in Rajya Sabha remains a concern, but the government is determined to re-promulgate the ordinance. During the course of deliberations, some non-BJP parties conceded that the government will be well within its right to do so, thus encouraging the plan to prorogue Parliament soon enough for the ordinances to be re-issued. The next session will be called shortly afterwards because finance bill has to be passed.