The centre is planning to expand its disinvestment plans and considering bringing two key sectors i.e. banking and insurance, into the ambit of its new disinvestment policy.
A new disinvestment policy is in the making and people in the know of things said that a draft cabinet note is being prepared for the same. The Prime Minister’s Office (PMO), the Finance Ministry and the NITI Aayog have already discussed the inclusion of the insurance sector for strategic disinvestment and the banking sector is likely to be discussed upon later.
However, the Life Insurance Corporation of India will not be part of this disinvestment process. There are a total of eight state-run insurers, including six general insurance companies and one reinsurance company. Earlier this month, the Union Cabinet approved capital infusion of Rs. 12,450 crore into three state-run insurance companies, which includes the Oriental Insurance Company, the National Insurance Company and the United India Insurance Company.