19.1.17

CCEA Approves Listing of 5 General Insurance PSUs

The government has decided to list five state-owned general insurers and said it will bring down its stake in these insurance companies to 75%. The decision was approved by the Cabinet Committee on Economic Affairs. These companies are New India Assurance Company, United India Insurance, Oriental Insurance Company, National Insurance Company and General Insurance Corporation of India. The listing will allow companies to raise capital for expansion and not be dependent on government.

Besides, the government expects listing to improve corporate governance and risk management practices leading to improved efficiency. The government will bring down its stake to 75% in one or more tranches over a period of time.
The government has set a target of Rs.56,500 crore from PSU disinvestment in current fiscal.

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