New Delhi/Kolkata: Finance Minister Nirmala Sitharaman on Saturday said insurance behemoth LIC will be listed as part of the government disinvestment initiative.
She further said that the listing brings in more financial discipline among the entities.
The government proposes to sell a part of its holding in LIC through initial public offer, she said while unveiling Budget 2020-21.
Currently, the government owns the entire 100 per cent stake in Life Insurance Corporation of India (LIC).
LIC employees’ unions on Saturday opposed the Centre’s plan to sell a part of its shares in the state-run insurance behemoth through an initial public offer (IPO), insisting that the move is “against the national interest”.
Finance Minister Nirmala Sitharaman said the Life Insurance Corporation of India (LIC) will be listed as part of the government disinvestment initiative.
“We strongly oppose the government’s plan to sell a part of its shares in LIC and the move is against the national interest,” a spokesman of an employees’ union told reporters here.
Established in 1956, LIC is fully-owned by the central government and has the highest market share in the life insurance segment in the country.
He said that LIC has contributed a lot in the economic growth and the dilution of the government’s stake in the company will “endanger the economic sovereignty of the country”.
The employees’ unions of LIC across the country will stage nationwide protests if the government goes ahead with its plan, he said.
He alleged that it will also affect crores of policy holders of LIC.
Also Read: Modi govt begins new process to sell Air India, asks buyer to absorb Rs 23,000 crore debt
In the name of disinvestment the Govt. has given up the assets it used to hold and regulate itself. LIC could be the next after Sick Air India. After getting crores from RBI, then privatizing the Railways in stages , now LIC is perhaps the richest institution of all times. The wolf is ready to stuck for the big feast. No matter the masses from various trade associations opposes the move , nevertheless LIC will be done by next year. Meanwhile the 130 Crore Indians will be kept busy in CAA and NRC with PAK/CHINA as agendas to be covered by the Television anchors. In my home town hundreds of BSNL employees have started taking VRS making another area prone to be let out in open hands. I often listened that “Bhagwan jab bhi deta hai, Chappar Phad ke deta hai”, Here its exactly reversed “Govt. jab bhi leta hai , Chappar bhi phad deta hai”. Even Vishnu and Mahesh are surprise by the functioning of Mota Bhai and Chota Bhai. The share markets have given its response with a loose hand falling more than 700 points kicking a fire for the small time investors. Are we heading towards an economy similar to that of Sri lanka, Myanmaar, Yemen, Syria, Venezuala etc which is struggling to stand even after multiple support from various sides. Rest the rightist are doing brisk political moves similar to that of Taliban and it seems the move is doing good for the Govt. as the rest are busy fighting social media wars. Newer mind with billions in its room to attract the beast, LIC will or may fall to the might of the invasion as the necessary homework has already been exercised to get a clear hit. The Various Unions may finally succumb to the lucrative VRS offers to set out the opponents in a legal framework.
Why don’t sell the government itself , it will bring efficiency and discipine ???