A divisional-level conference held in Mysuru on Saturday resolved to oppose the government’s move to float Initial Public Offer (IPO) of LIC on the grounds that it paved way for privatisation of the corporation.
Organised by the LIC Employees Union of Mysuru division, the conference demanded that the government immediately disband its proposed move and said that it was antithetical to the concept of Atmanirbhar Bharat. Instead, the government should take steps to strengthen public sector organisations which have played key role in India achieving self-reliance in many spheres.
The conference resolved against the IPO and criticised the government move to bring about legal provisions or initiate amendments to various clauses and acts governing the LIC to go ahead with the initial public offer. The employees union said this was the first step towards privatisation of LIC and noted that though the government holds 100 per cent stakes in LIC, it has approved FDI to the extent of 20 per cent besides selling part of its stake via public offering. The union also said that the SEBI ‘tweaked’ the rules for the initial public offer at the government’s behest so as to enable 20 per cent of FDI in LIC IPO. It also expressed concern that as per the Draft Red Herring Prospectus (DRHP) filed by the LIC with SEBI the IPO is 100 per cent Offer For Sale by the government entailing no fresh issue of shares. This, according to the union members, meant that the LIC will not receive any proceeds of the IPO.
Claiming that no organisation has contributed to the growth and development of the nation by way of funding as much as LIC, the employees said that it has invested to the tune of ₹36 lakh crores in various sectors of the economy. Underlining the role of LIC in extending insurance cover to the commoners and investment in social sectors, the union said privatisation will result in a shift in focus to profit-oriented schemes while the policy holders will get a short shrift.
Meanwhile, the All India Insurance Employees’ Association has called for a two-day strike on March 28 and 29 and the Mysuru Divisional level conference expressed its support for it.
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