Employees' Unions Oppose Govt Plan to Sell Stake in LIC

Kolkata: 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), terming the move as "against the national interest".

Finance Minister Nirmala Sitharaman in her Budget speech said the Life Insurance Corporation of India (LIC) would 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.

The employees' unions of LIC across the country will stage nationwide protests if the government goes ahead with its plan, he said, adding that the “it will also affect crores of policy holders.”

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 had 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 government proposes to sell a part of its holding in LIC through the initial public offer," the finance minister said, without specifying any further details.

The government currently owns the entire 100% stake in LIC.

The government has set a divestment target of Rs 2.1 lakh crore for 2020-21 compared with Rs 1.05 lakh crore target for the 2019-20. It has already invited bids from potential buyers for 100% stake sale in Air India and is also going ahead with divestment in BPCL, Shipping Corporation and Container Corporation.