While presenting the Union Budget 2020, Finance Minister Nirmala Sitharaman on February 1st, 2020 proposed to sell a part of its holding in largest insurer Life Insurance Corporation of India (LIC) via initial public offer (IPO). The Minister also proposed to sell the government’s remaining stake in IDBI Bank.
Sitharaman didn’t specify any further details but the announcement was met with massive uproar from opposition members.
The LIC is a state-owned insurance group and investment corporation owned by the Government of India. The LIC was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the insurance industry in India.
The government set a divestment target of Rs 2.1 lakh crore for fiscal year 2020-21 compared with Rs 1.05 lakh crore target for the ongoing financial year.