The Union Govt's act of filing DRHP with SEBI to sell 5% of its stakes is undoubtedly a move towards privatisation and quite undesirable. It goes...
Chief Minister M.K. Stalin criticized the Union government's DRHP filing to dilute stakes in LIC, warning against undesirable privatisation of national institutions.
M.K.Stalin@mkstalinOriginal post
The Union Govt's act of filing DRHP with SEBI to sell 5% of its stakes is undoubtedly a move towards privatisation and quite undesirable.
It goes without saying that this is neither in the interests of our people nor the organisation. (2/3)
Tamil Nadu Chief Minister M.K. Stalin strongly criticized the Union government's decision to file a Draft Red Herring Prospectus with SEBI to sell a five percent equity stake in the Life Insurance Corporation of India. Stalin characterized the move as an unmistakable step toward systematic privatisation, warning that diluting state control in the country's largest public insurer is fundamentally contrary to the long-term economic interests of Indian citizens.
The Chief Minister underscored that LIC represents the collective financial security and generational savings of over thirty crore policyholders, primarily comprising middle-class and rural families. Disinvesting shares in such a profitable, stable sovereign institution to meet budgetary deficit targets undermines domestic financial independence. Stalin emphasized that public sector institutions should remain dedicated to sovereign welfare and equitable wealth distribution rather than being exposed to market volatility and private commercial motives.
Stalin urged parliamentary opposition parties, trade unions, and policyholders across India to challenge this policy direction collectively. He reiterated Tamil Nadu's firm stance that strategic national assets built over decades through public participation must be protected and strengthened rather than liquidated for transient fiscal gains.