Ranchi: BJP MP and former Union Finance Minister Jayant Sinha Sunday said Sunday disinvestment of the Life Insurance Corporation (LIC) as proposed in the Union Budget would be beneficial for it and the government.
“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,” Sinha told a press conference here.
“If the LIC required more capital, it would be able to take it from the market and not from the government. The more than Rs 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 pointed out.
The budget presented by Finance Minister Nirmala Sitharaman 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 asserted.
To a query on the fate of policy-holders, Sinha 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 five to 10 per cent of its holding in LIC,” Sinha pointed out.
Currently, the government owns the entire 100 per cent stake in the LIC.
Sinha praised Sitharaman and said she addressed the economic situation, fiscal deficit and macro-economics very well.
Agencies