New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharman on Saturday presented the Union Budget 2020 for the financial year 2020-21. During her speech, while presenting the Budget 2020, Nirmala Sitharaman said insurance behemoth LIC will be listed as part of the government disinvestment initiative.
She further said that the listing brings in more financial discipline among the entities. “The government proposes to sell a part of its holding in LIC through initial public offer”, she said while unveiling Budget 2020-21.
Opposing the government's decision to list Life Insurance Corporation of India (LIC) through an initial public offering (IPO), the All India Insurance Employees' Association (AIIEA) will first go on one-hour walk-out strike on February 3 or 4, a top union leader said on Saturday.
"We are opposed to the move. We will first go on one-hour walk-out strike on February 3 or 4. After that we will plan our further course of action," AIIEA General Secretary Shrikant Mishra told IANS.
He said that the process of listing LIC may not be easy as there are several procedures that have to be followed including the approval of the Parliament. Mishra said the government was not able to attract any buyer for Air India and it has to show some blue-chip disinvestment and hence, decided on LIC.
Employees of public sector general insurance companies will also show their support by holding a demonstration outside their offices on that day.
"If listed and LIC turns into truly board managed than, the biggest cash cow may not be available for the government in its disinvestment process as it the case of listing of General Insurance Corporation of India, IDBI Bank and New India Assurance," an industry official told IANS preferring anonymity.
"The pensioners of LIC and the four public sector general insurers will also join the protest," J.Gurumurthy, vice President, All India Insurance Pensioners' Association told IANS.
For complete coverage of Union Budget 2020
(With IANS Inputs)
Posted By: Talib Khan