The Hindu Business Line : Burdening LIC

This refers to the report `LIC in fray for taking over IFCI" (Business Line, October 11). This is yet another instance of the government — the owner — using LIC as a milch cow. Why should LIC policy-holders pay for bailing out the IFCI?

The Finance Ministry's reason for the proposal that "IFCI's expertise in project appraisal could come in handy for LIC for its exposure to the infrastructure structure," is not only amusing it is astonishing. The very fact that the country's first industrial finance institution was allowed to sink over the years to become what it is todayis sufficient evidence of its `project appraisal abilities'. Any financial institution interested in growing through takeovers will be hesitant in taking over the ailing IFCI. The Government should reconsider the issue and not force this decision on LIC and burden its policy-holders.

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