New Delhi, Feb 6: The central government is also seeking to hand over the life insurance corporation (LICI) to the private sector after Air India, India Petroleum. For this, a portion of the government-owned shares in LIC will be sold. Saturday is the 2020-20 financial year. Union Finance Minister said in the general budget. On hearing this, there has been a storm of intense criticism.
Camp and staff of LIC, in the jurisdiction. According to banks, insurance and rail, the fields have been privatized for the last few years. But the center could not work for so long under the influence of trade unions. But the second time – the Madi government after returning to power with enormous power. Anyone who does not want to leave these jobs is clear from the finance minister’s proposal. Nirmala Sitharaman said on the day that the government has as many partnerships in the LIC as the initial public offering.
The government will sell some of it through IPO. ‘ He said in the fiscal year last fiscal. The deficit was 5.5 percent of GDP. The Center has set a target of reducing it in the next fiscal year. LIC shares to raise that money. The government wants to sell it to private companies. Currently 5% of the shares of LIC. It is in the hands of the central government. How much from that It is important that the quantity sold be sold. Nirmala didn’t. But in the opinion of the Life Insurance Corporation, the cloud of fear of depositors is hinting at the gradual transfer of a significant and profitable entity to the center by the private. Has been created. Chief Minister Mamata Banerjee has vowed to hand over a small part of the LIC to such a private hand.
“I was shocked and surprised by the way the central government planned to destroy the traditions of government institutions,” he wrote on Twitter. According to the LIC, the security concerns of the organization have long been abolished. Grassroots leader According to LIC, Air India, Indian Rail, BSNL He questioned whether an era was being ended by pushing for privatization. Along with Mamata, former Union Finance Minister P Chidambaram also lashed out at LIC.
Union Minister for Commerce Piyush Gael, however, is reluctant to address the ban. He said that LIC. Selling a small portion will increase the organization’s accountability and transparency in its operations. Because, it is a government agency. It will not hurt anybody.
LIC employees also criticized the center’s position. All India Insurance Joint Secretary of the Employees ‘Association Jayant Mukherjee said, “Customers’ trust was hurt. The security that LIC provided on savings, if left on the path, will be lost. Private companies buy shares of LIC will increase the risk. They will soon come out in a big protest against the decision of the Center, said Jayantabu.
Many have also doubted how much money will be saved by investors in LIC when it goes into private hands. Ram Krishna Dutt, president of the Life Insurance Employees Association (Kolkata Division), said that LIC has taken 5 percent of its life insurance market by fighting with 25 private insurance companies. Customers from | Confidence goes awry. The focus of the government is now on the treasury of the LIC. So the stock sale is going fast. Experts think LIC is central The government’s cedar laid eggs. 20-6 LIC paid dividend of Tk 25.5 crore to the Center this year.
Organization in the current financial year Valuation surplus has been Tk 5.25 crore. LIC exchanges an average of Tk 4,000 crore to Tk 5,000 crore every year on the stock market. Life insurance for Tk 5,700 crore is invested in debentures and bonds. Of the corporation. The center has also been asked by LIC to save IDBI Bank, which is in debt. However | The government has to revise the DMR Act before releasing the IPO of the LIC.