ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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‘एलआयसी’मधील भागभांडवलाची विक्री

Is the proposed public offering of LICs stake anything more than a political stance?

 

The translations of EPW Editorials have been made possible by a generous grant from the H T Parekh Foundation, Mumbai. The translations of English-language Editorials into other languages spoken in India is an attempt to engage with a wider, more diverse audience. In case of any discrepancy in the translation, the English-language original will prevail.

 

In its 2020 budget, the central government has proposed to divest (reportedly 10% of) its ownership in Indias insurance behemoth, the Life Insurance Corporation of India (LIC) through an initial public offering (IPO) to be floated in the next fiscal year. This, understandably, is in line with the governments (belligerent) disinvestment and asset monetisation strategy, and as per media reports, the IPO is expected to amass about a third of the total disinvestment target of `2.1 trillion set by the government for the financial year 2021. Listing the LIC, however, is not the brainchild of the current government. While predecessor governments had toyed with the idea, they had refrained

from actual implementation. Notwithstanding the complexities of the corporations structure and its investment portfolios, such forbearance also lies in the very fact that being 100% under government ownership, the LIC could be a ruling governments milch cow for funding and bailing out public sector enterprises in crises. Other than an official statement, how different is the current governments rationale for LICs listing from such sentiments of its predecessors, in reality?

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Published On : 20th Jan, 2024

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