The Bharatiya Mazdoor Sangh (BMS), an RSS affiliate, has termed the budget proposal on disinvestment of the LIC and IDBI as "bad economics". "It indicates the government is helplessly continuing to depend on sale of national wealth for revenue generation," the BMS said.
Stating that a national discourse is required for finding an alternative revenue generation method, the BMS said otherwise all the public sector undertakings and other assets would be sold at throwaway prices.
Finance Minister Nirmala Sitharaman said on Saturday the government would reduce stake in the life insurer LIC through the initial public offering (IPO). "The government will list LIC on the stock exchanges," she said in her budget speech.
To be listed in the FY21, starting April, it could be the country's biggest IPO in the recent times. However, the listing could be a complicated affair given LIC's huge investments in real estate, art and equity market, said an official. The valuation process could be time consuming, the official added.
In FY20, the disinvestment accrued only about Rs 18,000 crore to the government.