N.K. Premachandran, MP, has said that the Centre’s decision to offload its stake in Life Insurance Corporation of India (LIC) could be devastating for the country’s economy.
He was speaking while inaugurating the two-day All India Biennial General Council of the Federation of LIC Class-I Officers’ Associations here on Monday.
Terming the success story of the State-run insurance behemoth as a model worth emulating for other public-sector undertakings, Mr. Premachandran said that the Centre’s move to sell a part of its holding in the LIC through initial public offering (IPO) lacked logic. “The Centre is hell-bent on destroying a company that has been reaping huge profits with minimal government support since its inception in 1956. The government intended to privatise the company through its decision to sell off 10% of its shares,” he said.
Role in development
He added that the country had managed to insulate itself from the repercussions of the global recession of 2008 due to its robust public-sector banking and insurance sector.
Besides, the company had played a major role in the country’s development by financing numerous projects, including drinking water schemes, infrastructure development, transportation and rural development.
“While the company has been able to withstand competition posed by multi-national companies in the era of globalisation thus far, the Centre’s bid did not auger well for the company and the country as a whole,” Mr. Premachandran said.
He added that while the company had grown to possess assets to the tune of ₹32-lakh crore, though it had received only less than ₹100 crore by way of grants from the Centre since its establishment. The unparalleled achievement was mainly due to its unmatched rural penetration and the efforts made by the company’s development officers and agents over the years.
MLA differs
BJP MLA O. Rajagopal, who delivered the keynote address, struck a discordant note.
Alleging that such controversies were propagated by those with “leftist thinking,” he said that the reforms were aimed at protecting the interests of the country at large, though they could possibly affect a few sections.
He exhorted the delegates to adopt a holistic view and not a sectarian view in such issues.
Federation president Baburao Humraskar presided over the inaugural session. Federation general secretary S. Rajkumar, LIC regional manager R. Palanisamy, Thiruvananthapuram senior divisional manager Deepa Sivadasan, National Federation of Insurance Field Workers of India secretary general Vivek Singh and All India Insurance Employees Association general secretary Srikanth Misra spoke.
