New Delhi:The journey of this 60 year old government insurance company has been fantastic. LIC owns more than 70% of the insurance market in India.
Whenever the government is in trouble, LIC came forward like a trusted friend. For this, LIC has also suffered losses.
Finance Minister Nirmala Sitharaman has set a disinvestment target of Rs 2.1 lakh crore, which is the highest ever. Out of this, there is a plan to get 90 thousand crores from LIC and IDBI. The Modi government has already announced the sale of Bharat Petroleum and Air India.
When the LIC Act of nationalization of life insurance related business activities was introduced in India in the year 1956, very few people would have expected that one day the proposal of selling it in Parliament would come.
Not too old when in 2015, during the IPO of Oil and Natural Gas Corporation Limited (ONGC), the Life Insurance Corporation of India had invested a sum of $ 1.4 billion. Four years later, when it came to salvaging IDBI Bank, which was struggling with bad debts, LIC once again opened its bag.
But now the situation has changed and the government wants to reduce its stake in LIC by 100 per cent. That is, till now the government used to sell LIC to others, now it is going to sell itself. The government is going to adopt an IPO route to sell stake.
However, the situation has not been clarified about how much percentage shares will be handed over to the market through IPO.
If the government holds more than 50% stake in LIC, then it means that the management and large stake of Life Insurance Corporation of India will remain with the government.