Government to privatise Oriental, United India Insurance companies
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New Delhi: After raising the cap of foreign investment in the insurance sector, the Centre is set to privatize two more public sector insurance companies; Oriental Insurance and United India Insurance Corporation.
The Centre has alleged that the two companies are in a financially profitable situation owing to regular investment. To improve the condition, the government intends to invest 3000 crores more into the two. Considering the sound financial condition, the private sector would be more willing to invest in its shares, claims the government. The government also informed that the initial process to find eligible investors has begun.
Finance Minister Nirmala Sitharaman had announced a large scale privatization agenda, including the privatization of two public-owned banks and one general insurance company, in the '21-'22 budget presentation on February 1st. The foreign investment in insurance was capped at 74 from the existing 49 per cent at the presentation.
The sale of the primary shares of Life Insurance Corporation of India is the first major step on the agenda. This year, the BJP government intends to gain 1.75 lakh crores by the process of selling shares.
