Divestment To Help Both LIC, Government: Jayant Sinha

Money & Banking

PTI Ranchi | Updated on February 02, 2020 Published on February 02, 2020

BJP MP and former Union Finance Minister Jayant Sinha on Sunday said disinvestment of the Life Insurance Corporation as proposed in the Union budget would be beneficial for both the central government and the LIC.

The capital raised post-divestment could be used in building infrastructure while the move would also bring in “accountability, transparency and efficiency” in the insurance behemoth, he told a press conference.

“If the LIC required more capital, it would be able to take it from the market and not from the government. The more than 10 lakh crore capital of the LIC would be helpful for us all. It could help us get funds for constructing infrastructure like medical colleges,” Sinha said.

The Budget presented by Finance Minister Nirmala Sitharaman on Saturday has proposed to construct a medical college in every district, besides taking up other infrastructure developmental projects, he said.

“There are three benefits from the disinvestment of the LIC - it will be strengthened with the listing with share market, which requires reporting every month. It will also bring in accountability, transparency and efficiency,” the MP from Hazaribag said.

To a query on the fate of policy-holders, he said all of them will get every benefit assured in their policies as there is no connection between the disinvestment initiative and policies.

“Moreover, the central government will sell only 5 to 10 per cent of its holding in LIC,” Sinha said.

Currently, the government owns the entire 100 per cent stake in the LIC.

Sinha praised Sitharaman saying she addressed the economic situation, fiscal deficit and macro-economics very well.

 

 

Published on February 02, 2020

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