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Home Business and Management

Modi govt’s move to disinvest in LIC may well end up destroying the bluechip public sector company

admin by admin
July 2, 2020
in Business and Management
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Modi govt’s move to disinvest in LIC may well end up destroying the bluechip public sector company
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During the course of time it has grown into a mighty public sector financial institution providing insurance coverage to millions of people. Its assets have also grown to the tune of Rs three lakh crore.

Thousands of employees, officers and agents have worked hard to strengthen this public sector. LIC, with its huge resources, has stood with the nation in the patriotic duty of building progress. Its profits were rerouted to the service of the nation in the form of investments in social sectors like housing, power, irrigation, water supply, seewage, road, port, bridges, railways etc. The country and the people benefitted a lot from the service of LIC during the last 64 years.

In their frenzy for privatization the BJP government is not concerned about these aspects of LIC. Even in the present days of COVID-19 the entire world has come to acknowledge the failure of the private sector and the inevitability of public sector. It is at such a juncture the Modi government is singing its praises for the market greed, covering it in the garb of ‘Atmanirbhar Bharat’.

After 14th of July, the priorities and concerns of LIC will be altered. Its emphasis will be changed. National priorities and reasonable returns to the policy holders have been the main criteria of LIC’s investments. The public offer, through disinvestment, will displace LIC and it will be forced to cater to the private needs of the major shareholders.

Foreign investors who were eyeing this great financial institution will definitely make use of the offer rendered by the ‘nationalist government’ led by Narendra Modi. The already existing private players in the insurance sector would naturally jump into the scene and try to reap gains.All along these years, LIC could prove its efficiency and commitment because of which the private insurance companies were pushed to a corner.

Tags: bluechipcompanydestroyingdisinvestgovtsLICModimovePublicsector
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