Kerala passes resolution against LIC IPO, CM Vijayan said - it is not in the interest of the country

Kerala passes resolution against LIC IPO, CM Vijayan said – it is not in the interest of the country

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New Delhi: On the one hand, the central government is preparing to bring the IPO of the state-owned life insurance company LIC, on the other hand, not only is the opposition to this decision of the government increasing, but the growth of this largest insurance company of the country is also slowing down. On Wednesday, the Kerala Assembly passed a unanimous resolution expressing concern over the Centre’s decision to sell stake in Life Insurance Corporation of India (LIC). The Kerala Legislative Assembly also requested to keep it under the government.

CM Vijayan said-First step towards privatization

The Kerala Legislative Assembly passed a unanimous resolution against LIC IPO saying that giving LIC in private hands will not be in the interest of the country. The central government should reconsider its decision. Kerala Chief Minister Pinarayi Vijayan introduced this resolution in the assembly on Wednesday. Vijayan said, “The central government is trying to justify its decision by saying that only 5 per cent stake will be sold through IPO and it is not privatization of LIC. But it is clear that selling one’s stake is the first step towards privatization and that is the real goal of the government.”

He said, “Without any discussion in Parliament, such an important institution is being privatized.” Citing figures, Chief Minister Vijayan said that LIC has so far invested Rs 36.76 lakh crore for the benefit of the society. This huge resource of resource will end with its privatization.

LIC’s growth is only 0.24 percent

According to the data of the insurance sector regulator IRDAI, the growth of new business premium of LIC was only 0.24 percent in the first 11 months of the financial year 2021-22. During this, the company achieved a new business premium of Rs 1.56 lakh crore. In comparison, the growth of new business premium of private insurers was 24.7%. His total new business premium during this period stood at Rs 98,213 crore.

The central government is going to sell its 5 percent stake in LIC. In return, the government is expected to get 60-80 thousand crore rupees. After the IPO, it will come in the list of the largest companies of the country.

Tags: Kerala, Kerala Chief Minister Pinarayi Vijayan, LIC IPO

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