The Hindu Business Line : LIC can go ahead with operational revamp — `Only those needing Act changes have to wait for Govt nod'

The Government has said that LIC need not wait for its green signal to implement those recommendations in the restructuring report that do not call for amendment to the laws.

"They (LIC) can go ahead with implementing those portions of the report that do not require legislative amendment," a top Finance Ministry official said.

"Most of the recommendations in the report can be implemented by LIC on its own as it pertains to its day-to-day working such as changes in investment activities," officials said, while confirming having received a copy of the report forwarded by the corporation.

That, in effect, means that the corporation need not wait for the formation of the new Government at the Centre to proceed with implementing the report as was assumed when LIC confirmed that the report had been forwarded to the Ministry of Finance.

Recently, the LIC board of directors forwarded the report to the Government after agreeing with some of its suggestions while giving its comments on others that required legal changes.

Though not willing to divulge the contents of the report, officials said that the major restructuring issues such as corporatisation, removal of sovereign guarantees from LIC policies and increasing the paid-up capital from Rs 5 crore have been touched upon in the report.

"The report mentions these issues in passing. All of these are part of the LIC Act and require Government intervention. We will take a decision on these in due course," they added.