Finance Minister Nirmala Sitharaman in her Budget 2020 speech on Saturday announced that the government has proposed to sell a part of its holdings in state-owned Insurance company Life Insurance Corporation of India (LIC).
“The government proposes to sell a part of its stake in LIC through IPO,” said Finance Minister in her Budget 2020 speech. She informed that the government will list LIC on the stock exchanges. Currently, the government owns 100 per cent stakes in LIC.
Life Insurance Corporation of India is an Indian state-owned insurance group and investment corporation owned by the Government of India. As of 2019, Life Insurance Corporation of India had a total life fund of Rs 28.3 trillion. It has 290 million policyholders.
The developments come as the Life Insurance Corporation of India had closed 23 schemes on January 31 following the guidelines of the Insurance Regulatory and Development Authority of India.
The move is in line with the government’s aim to look at stake sale in government entities to shore up its finances and allow these PSUs to raise resources. The govt has pegged disinvestment for FY21 at Rs 2.11 lakh crore
The government had set a target of Rs 1.05 lakh crore in FY20. On the strategic sale, the government has already initiated the process for Air India and invited bids from potential buyers for a 100 per cent stake in the National Carrier.
Apart from Air India, other major strategic sales lined up are that of government refiner, Shipping Corporation and Container Corporation.
The disinvestment of LIC is in line with the government’s aim to look at stake sale in government entities to shore up its finances and allow these PSUs to raise resources. The govt has pegged disinvestment for FY21 at Rs 2.11 lakh crore.
