Employees' unions to protest against govt plan to sell shares in LIC
Presenting Union Budget for 2020-21, Finance Minister Nirmala Sitharaman said that the government will sell a part of its holding in Life Insurence Corporation through IPO.
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.
The government proposes to sell a part of its holding in LIC through IPO, she said while unveiling the Budget 2020-21.
"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.
In 2018, LIC was used to bail out a failing IDBI Bank at the cost of policyholders’ money and trust. Other troubles at DHFL, IL&FS, and YES Bank have also exposed India’s largest life insurer to major impacts.
The spokesman 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 policyholders of LIC.