Employees' Unions Oppose Govt Plan to Sell Shares in LIC, Say Move against National Interest

Kolkata: Life Insurance Corportation (LIC) employees' unions on Saturday opposed the Centre's plan to sell a part of its shares in the state-run insurance behemoth through an initial public offer (IPO), insisting the move is "against the national interest".

Finance Minister Nirmala Sitharaman said the LIC will be listed as part of the government disinvestment initiative. The government proposes to sell a part of its holding in LIC through IPO, she said while unveiling the Budget 2020- 21.

"We strongly oppose the government's plan to sell a part of its shares in LIC and the move is against the national interest," said a spokesperson of an employees' union.

Established in 1956, LIC is fully-owned by the central government and has the highest market share in the life insurance segment in the country.

He said the LIC has contributed a lot in the economic growth and the dilution of the government's stake in the company will "endanger the economic sovereignty of the country".

The employees' unions of LIC across the country will stage nationwide protests if the government goes ahead with its plan, he said, alleging it will also affect crores of policy holders.