The cabinet cleared the twin bills -- prevention of money laundering and foreign exchange management (Fema) -- though a decision on the patents bill was deferred.

The cabinet also cleared the new housing policy. The government, it may be noted, had promised in its much-touted national agenda of governance that it would come out with a new housing policy aiming at providing two million houses every year.

"We are hopeful of introducing the twin bills in the current session of parliament," parliamentary affairs minister Madan Lal Khurana told newspersons immediately after a two-and-a-half hour meeting late on Friday evening.

Finance minister Yashwant Sinha told reporters after the meeting that the twin legislations to prevent money-laundering overseas andliberalise the foreign exchange regime had been approved by the cabinet.

Khurana said a bill on extradition of foreigners without valid documents would also be tabled in the budget session of parliament.

Khurana said that the extension of parliament session (see box alongside) was mainly to enable a discussion on the final report of the Jain Commission and the action taken report, which are to be tabled on July 30.

Khurana said the government would recommend an extension of the current session to Lok Sabha speaker and Rajya sabha chairman. The business advisory committee of the Lok Sabha has already agreed to an extension of the house by a day up to July 30.

The Foreign Exchange Management Act will replace the draconian Foreign Exchange Regulation Act (Fera) in keeping with the new liberalised economic order in the country.

Trade and industry has for long been demanding the scrapping of the "draconian" Fera, saying that it had outlived its utility in the changed economic scene.

The moneylaundering bill is aimed at preventing any laundering of proceeds from crime and drug-trafficking overseas, and is in keeping with finance minister's budget announcement that the government would soon come out with the twin bills.

Commerce minister RK Hegde said the cabinet had deferred the introduction of the patents bill in the current session of parliament for want of "national consensus". Though the country has time till 2005 to switch over to a new patents regime under the framework of the World Trade Organisation -- a part of the General Agreement on Tariffs and Trade -- it is nevertheless required to put in place a mail-box arrangement to receive applications for products and process patents. However, the World Trade Organisation's dispute settlement body has asked New Delhi to formulate a competent patents act for pharmaceuticals and agro-chemicals immediately following complaints lodged by the United States.

Budget session may be extended till August 4

The Union cabinet on Friday nightdecided to recommend extension of the current session of parliament till August 4 to facilitate discussion on the Jain commission report.Parliamentary affairs minister Madan Lal Khurana said after the cabinet meeting that the extension was mainly to enable discussion on the final report of the Jain commission and the action taken report (ATR), which are to be tabled on July 30.

Khurana said the government will recommend the session's extension to the Lok Sabha speaker and Rajya Sabha chairman.

The Lok Sabha's business-advisory committee has already agreed for the house's extension by a day up to July 30.

Khurana said the government plans to introduce the foreign exchange management mill, money laundering Bill and a bill on extradition of foreigners without valid documents.