Members of All India Insurance Employees Association on Monday staged a massive demonstration in Chennai against government’s decision to sell the partial stake in the LIC through an initial public offer
Members of All India Insurance Employees Association on Monday staged a massive demonstration in Chennai against government’s decision to sell the partial stake in the Life Insurance Corporation (LIC) through an initial public offer, announced in the Union Budget 2020-21 released by Union Finance Minister Nirmala Sitharaman on Saturday.
The protest took place at the southern regional headquarters of the LIC in Tamil Nadu's capital city.
Significantly, Minister of State (MoS) Finance Anurag Thakur had tried to allay concerns of the LIC stakeholders earlier in the day, stating that the new rules will "help bring in greater transparency, public participation and also deepen the equity market."
"Government came out with the idea (LIC listing). The details will follow, and it will be in the interest of LIC and its policyholders. Interest of LIC and policyholders will be safeguarded," he told PTI in an interview.
Asked about quantum of stake sale, he said, once the amendment to the LIC Act is finalised you will get all the details.
"LIC have an independent set-up to decide where they want to invest even today and what will continue in the next format that would come into light as well in the future," he said.
Finance Minister Nirmala Sitharaman while presenting the Budget 2020-21 on Saturday proposed to sell a part of government stake in LIC through an initial public offer next fiscal.
The government aims to garner Rs 90,000 crore from the listing of LIC and stake dilution in IDBI Bank in the next fiscal out of total disinvestment target of Rs 2.10 lakh crore.
The government currently owns 100 per cent in LIC, while it holds around 46.5 per cent stake in IDBI Bank.
Assuring that the numbers presented in the Budget as realistic, Thakur said several measures announced in the Budget will help boost economy and meet nominal GDP growth target of 10 per cent set in the Budget.
"Just three four months back the government announced corporate tax rate cut. It takes some time to implement that at the grassroot level. So, you will see impact of that in some time. That is why we have not said 7.5 per cent, we have said 6.5 per cent (growth). And that is a real and genuine numbers we are looking at," he said.
Besides, he said, the revenue and expenditure target for the next fiscal are very much achievable.
(with agency inputs)
