LIC employees protest against Centre's disinvestment proposal, oppose move

Life Insurance Corporation (LIC) employees on Tuesday opposed the government's proposal of disinvestment of the corporation and protested against the decision in Coimbatore.

During the Union Budget on Monday, Finance Minister Nirmala Sitharaman said that the initial public offering of LIC will be brought in through requisite amendments in the session itself.

Talking about the government's proposal, a protester told ANI, "The government has announced in the budget that the FDI in the insurance sector will be increased from 49 to 74 per cent. Simultaneously the government also declared disinvestment of LIC shares in the Indian stock market. On behalf of the All India Insurance Employees Association, we oppose and condemn the move by the Government of India (GOI). The government proposed to generate 1.75 lakh crores during this year by selling the shares of the public sector. It is against the will of the people."

The protester claimed that by avoiding disinvestment of the shares of the public sector, LIC alone can contribute 3 lakh crores surplus every year that can be used by the government for social welfare schemes, while adding that the employees expected LIC's income to cross Rs 5 lakh crores this year.

He further added, "We feel that instead of disinvesting LIC, the government should give autonomy to LIC so that it can perform well and can garner the savings of the people. It can contribute more to the government's exchequer for the welfare of this country."

The Budget proposals for 2021-22 on Monday put Rs 1.75 lakh crore as a target from stake sale in public sector companies and financial institutions.

Sitharaman had said the government aims at making use of disinvestment proceeds to finance various social sector and developmental programs besides infusing private capital, technology, and best management practices.

"A number of transactions -- Bharat Petroleum Corporation Ltd, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam Ltd -- among others are proposed to be completed in FY 2021-22," she told the Parliament.

Other than IDBI Bank, a proposal of privatisation of two public sector banks and one general insurance company will be taken up in the year 2021-22. The initial public offering of Life Insurance Corporation (LIC) will also be brought in through requisite amendments in the session itself.