Emphasising that the move to sell equity of Life Insurance Corporation will severely impact the economy and vulnerable sections, LJD MP M V Shreyams Kumar on Thursday demanded that the company be retained under full government control.
Raising the issue as a Special Mention in the Rajya Sabha, Kumar said the move will give way to profit maximization for the shareholders, reducing the concept of people's money for people's welfare take.
"This is neither in the interest of the LIC's 40 crore policyholders, nor in the interest of the national economy. In a situation where the country needs huge resources for development, it is necessary that the government should exercise its control over the household savings," the Kerala MP said.
He said the policyholders of the LIC as well as the public are deeply disturbed with the reports that the government had initiated the process of selling parts of its stake in the country's largest insurance company.
Seeking the Finance Minister's intervention at the earliest before it makes "severe damage" to the economy, he said the LIC was created through an Act of the Parliament.
"It is unfortunate that the government is proceeding with a move, which will have a wide-ranging impact on the national economy, without a thorough discussion in Parliament," he said adding that the LIC was presently managing assets worth over Rs 32 lakh crore while it had a meagre capital base of Rs 5 crore in 1956.
"The move to sell equity of LIC will severely impact the economy and vulnerable sections of society. I request the government to retain LIC as a 100% government-owned institution," he said.