Money & Banking

Protesting LIC employees plan to mobilise public opinion on disinvestment

Surabhi Mumbai | Updated on February 04, 2020 Published on February 04, 2020

LIC employees in Mumbai protest against the Budget announcement that the Centre will sell a part of its holding in the Life Insurance Corporation of India (LIC) via an IPO. Pointing out that LIC is a profitable organisation giving a dividend to the Centre every year, and that a stake sale is therefore not necessary, employees across the country protested the planned IPO during their lunch break. Pic: Paul Noronha

The employees’ union of Life Insurance Corporation (LIC) of India now plans to mobilise public opinion on its proposed disinvestment, but has not taken a decision to hold a strike. “The initial public offering of LIC will be against the interests of the policyholder as well as that of the nation. We shall take this issue to the public also,” said All-India National Life Insurance Employees Federation General Secretary Rajesh Nimbalkar.

Employees of LIC across the country staged a two-hour walk out on Tuesday to oppose plans for the disinvestment.

“The government has not specified how much stake it will sell in LIC,” said Nimbalkar, adding that there are concerns that a majority stake-sale may be planned on the lines of BSNL and Air India.

The Centre currently holds 100 per cent stake in the life insurance behemoth. LIC employees have been protesting against the planned stake sale since it was proposed by the Finance Minister in the Budget.

“Listing of companies on the stock exchanges discipline a company and provides access to financial markets and unlocks its value. It also gives opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of IPO,” the Finance Minister had announced.

It is also expected to help the government meet the target of ₹2.1-lakh crore from stake sales next fiscal. Finance Secretary Rajiv Kumar, on Sunday, said the listing may be done in the second half of the next financial year.

Published on February 04, 2020
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