Sitharaman said her government was looking towards implementing a new Public Sector Enterprise (PSE) policy and suggested that the strategic transfer of Air India has been completed. The LIC IPO is crucial for achieving FY22’s divestment targets.
According to the Department of Investment and Public Asset Management (DIPAM), the government has received Rs 9,329.9 crore through divestments and Rs 35,116.72 crore through dividend receipts so far. The divestments of Rs 9,329.9 crore were mainly from the sale of Specified Undertaking of The Unit Trust of India’s (SUUTI) stake in Axis Bank worth Rs 3,994.33 crore and NMDC’s OFS worth Rs 3,651.37 crore.
ET had earlier reported that the cabinet could take up as soon as next week a proposal to allow foreign investment in LIC, to help facilitate the initial public offering of the state-owned insurer.
A senior government official told ET that the final proposal would be moved for Cabinet’s consideration soon and that the approval is expected by mid-February.
India allows foreign direct investment (FDI) of up to 74 per cent in the insurance sector, but this does not apply to LIC, which is governed by the LIC Act. The government may now allow up to 20 per cent foreign investment in the insurer that plans to list by the end of this fiscal year.
