JOIN USAddressing a media conference here on Monday, Nagesh said amendments to the Act are being made to privatise LIC.
Everybody has opposed the changes made to the bill, when it was presented in the Parliament.
Due to this, the finance ministry had constituted a Parliamentary standing committee. The committee has given several recommendations, which have to be considered by the central government, he added.
Foreign investors threat
The investment into LIC is being raised from Rs five crore to Rs 100 crore. This additional investment would be available by selling LIC shares in the market. Foreign private companies are eyeing the market and are planning to buy a large number of shares and control the Indian market.
Off the profits made by LIC, 95 per cent is given to the policy holders and five per cent is given to the investors (which is the central government).
Loss of Rs 37 crore
Now, plans are afoot to make the share available to central government to 10 per cent. Due to this policy holders would lose Rs 37 crore. In times of inflation, unemployment and corruption, the union condemns the central government’s plan to sell LIC to private players, he said.