With sharp divisions within the party and among its NDA allies on the issue of hike in sectoral caps for foreign direct investment, BJP would be holding a meeting with its alliance partners shortly to formulate its stand on it in Parliament.

While a section of the party led by former Finance Minister Yashwant Sinha and former Law Minister Arun Jaitley are reportedly in favour of the hike in sectoral caps announced by Finance Minister P Chidambaram in the telecom, civil aviation and insurance sectors, there is a strong section opposing it on several grounds, party sources said.

While some MPs favoured backing the United Progressive Alliance government's proposal, others felt that Sangh Parivar outfits including Swadeshi Jagran Manch and Bharatiya Mazdoor Sangh were opposed to it and as such it would not be proper to support it, the sources said.

They also recalled that the National Democratic Alliance government itself had capped the FDI limit in the insurance sector at 26 per cent.

Some members also felt that now that the party was no more in power, it should not take any stand that would alienate employees of the insurance, civil aviation and telecom sectors. "Let the government face the music," they felt.

In view of the "differences", BJP president M Venkaiah Naidu suggested that the party leaders discuss the issue threadbare followed by talks with NDA allies to formulate a stand when the Insurance Regulatory Development Authority Amendment Bill comes up for voting, they said.

According to sources, BJP's saffron ally, Shiv Sena has expressed serious reservations about the hike in sectoral caps. Several JD (U) leaders too are opposed to the move.

Though the party is making efforts to arrive at a common approach on the issue, BJP is not "too worried" over the differences of opinion on the matter as "it is no more in the government", the sources said.