FEDERATION OF RETIRED LIC CLASS I OFFICERS' ASSOCIATIONS
President : N.P. Bali 705, Sur, Veena Saaz, Thakur Complex, Kandivali (East), Mumbai - 400 101 Mob : 9820324213 Email Id - npbali@hotmail.com | General Secretary : D Krishnan No.6/1, Sreshta Riverside Apartments, Wood Creek Road, Nandambakkam, Chennai - 600089 Tel : 9176635967 / 044 42850049. Email Id - dkrishnan1@gmail.com |
E circular No.DK/49 30-11-2020
Friends,
Reg: Article on LIC Divestment …..
Friends,
There is an Article published in the Hindu, today, dt. 30-11-2020 ( included here) which makes interesting reading for most of us, who have been against the Govt. move to dilute the ownership of LIC, from being a 100% Govt. owned, to part private ownership through an IPO. Though the Govt. decision stands and there are moves initiated already, for moving in the direction of the policy decision made, this very focused writing, if it comes to their attention, should receive their very serious consideration.
This Article tries to point out that LIC has not only stood by successive Governments, through enabling them to have a very effective control over the share market, as also prop up sagging public sector Banks, and providing high value investments in Railway and big Road projects, has also given them very handsome returns on their basic investment in LIC, through Profits annually.
Points also have been made as to how LIC has been a very successfully run public sector organization by quoting the Results, and thereby questioning the need for bringing in additional corporate discipline. The Article quotes the number of National and international Awards LIC has won for its efficient functioning. The Claim Settlement Ratio at 99.7% is stated to be perhaps the best for any Insurer in the world.
However, it is doubtful if the Govt. would look back on its Decision to Corporatize LIC, to a limited extent, while still holding their aspects of final control. They might quote the example of the Nationalised Banks where in spite of dilution in Govt. ownership to extents of 40% or more, the Govt. has retained its stamp of authority in running these Banks as their own.
As for the Govt. decision on such dilution of ownership in public sector institutions, they may say, it gels with their overall Policy of not running businesses all on their own, but more, running the Govt. of the country, and deciding on policies and guidelines to still keep these corporatized entities well under their control.
As for LIC's efficiency, the Governments in the past too have lauded LIC for their working and called it the jewel in their crown. Their point may have more to do with falling in line with their overall policy, of diluting ownerships in PSUs, and thereby bringing in the business outlook and practices of well-run corporates in the field of private enterprise, rather than look at only the aspect of corporates having a share-holding in LIC per se. And their final sign off message on this may yet be, to say, what if a small part is privately owned, we still would hold the whip in terms of the directions the LIC would take in its onward march, as in Banks now.
Whatever the polemics on the ups and downsides of arguments on this issue, there is no doubting the quality of this write-up, on aspects the Govt. would do well to look at, once again, before marching ahead on their avowed policy Decision. This is where the plethora of employee Organizations and our own Pensioner Federation had come out strongly to warn the Govt. of possible consequences that may arise, as a result of the juggernaut moving on, in this dicey path.
With Best Wishes to all members
D.Krishnan.
General Secretary
Goose that lays the Golden Egg.pdf
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