LIC provides 2 cr boost to government's disinvestment kitty

Posted By: Religare
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LIC provides 2 cr boost to government's disinvestment kitty
State-run insurer the Life Insurance Corporation of India (LIC) has boosted the Indian government's record disinvestment kitty by purchasing more than Rs 2,000 crore or 10 per cent of the total shares sold by the government in PSUs in FY 2012-13.

Share sales in public sector companies (PSUs) have seen the Indian government garner a mammoth Rs 23,900 crore this fiscal, the highest ever amount collected by the exchequer through its disinvestment program, surpassing the Rs 23,553 crore collected in FY 2009-10.

The Indian government has divested stakes in eight PSUs this fiscal including NBCC, HCL, NTPC, RCF, Nalco, Oil India, NMDC and SAIL.

Since the government's disinvestment program kicked off in 1991-92, it has garnered a cumulative nearly Rs 1.37 lakh crore through stake sales in several PSUs.

LIC has acquired shares in seven out of eight PSU disinvestment candidates this fiscal.

In FY 2011-12, the exchequer sold stakes in ONGC and PFC, garnering a total Rs 13,894 crore.

LIC is estimated to have purchased nearly Rs 1,600 crore in the NTPC disinvestment program while, investing Rs 130 crore in the NDMC share sale.

In the stake sales of Hindustan Copper, NALCO and Rashtriya Chemicals and Fertilizers, the life insurer has acquired shares worth 211 crore, Rs 210 crore and Rs 142 crore, respectively.

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