Financial Daily from THE HINDU group of publications
Friday, Apr 02, 2004
Financial Daily from THE HINDU group of publications Friday, Apr 02, 2004 |
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Money & Banking
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Trade & Labour Unions LIC union concerned over Deloitte report Sarbajeet K. Sen
New Delhi , April 1 THE first winds of discontent over the Deloitte report for restructuring of Life Insurance Corporation (LIC) has started to blow. Close on the heels of the Corporation's Board of Directors forwarding the report to the Government for its consideration, the All India LIC Employees' Federation (AILICEF) has expressed its "serious concern" to the management over the development. In a communication addressed to the LIC Chairman, Mr S.B. Mathur, the federation has sought an "information sharing session" to understand the management's stand on the report. ``We feel very seriously concerned over the Deloitte report. We have the right to know what parts of the report has been accepted by the LIC's board of directors and what is left to the Government. We, therefore, urge you to hold an information sharing session on this crucially important issue so that the mutual trust so well developed between the management and employees' unions is not belied," Mr A.V. Nachane, General Secretary, AILICEF, has said in the communication to Mr Mathur. It is understood that the Deloitte report has sought to draw a roadmap for the recast of LIC. The suggestions include corporatisation of the entity, withdrawal of Government guarantee on LIC policies and a possible public offering at a future date. The LIC employees' federation has also sought to link the proposed move to adopt the Deloitte report to the recent statement made by the Union Disinvestment Minister, Mr Arun Shourie, that the Government has the potential to raise Rs 1,00,000 crore annually through disinvestment of stake in public sector undertakings. "There are reasons to believe that this is a tailor-made report to facilitate equity offering as in the latest case of ONGC where the sale of 10 per cent Government equity has yielded Rs 10,512 crore," Mr Nachane has said.
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