Budget 2020: The government will sell part of its holding in LIC, Finance Minister said.
Employees' union of Life Insurance Corporation (LIC) has strongly opposed the government's plan to sell a part of its holding in the country's largest financial institution through a public issue.
"The government proposes to sell a part of its holding in LIC through an initial public offer," Finance Minister Nirmala Sitharaman said on Saturday while presenting the Budget for 2020-21.
"LIC has always been the last resort for funding for other public sector entities. We strongly oppose the government's proposal to sell a portion of its holding in LIC," All-India Life Insurance Employees Federation General Secretary Rajesh Nimbalkar said.
Further, he said the government's move is against the interest of the public because the growth of LIC is the sheer outcome of the dedication and faith of policyholders and its agents.
Any dilution of the government's stake in LIC would shake the faith of the policyholders in the institution.
Mr Nimbalkar said though the government has not revealed the amount of the holdings it is planning on selling, going by the past experience it seems a majority of stake would be sold, resulting into LIC losing its public sector status.