Govt may consider Oriental Insurance or United India for privatisation
Updated:
Updated:
February 21, 2021 17:13 IST
The Finance Minister, in her Budget 2021-22, had announced a big-ticket privatisation agenda including privatisation of two public sector banks and one general insurance company
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The Finance Minister, in her Budget 2021-22, had announced a big-ticket privatisation agenda including privatisation of two public sector banks and one general insurance company The government may consider privatising Oriental Insurance or the United India Insurance Co. as their financial health has improved after a series of capital infusions, people aware of the development said.
To further strengthen their financial health, the government is expected to infuse ₹3,000 crore in the public sector general insurance companies during the current quarter.
The government may consider privatising Oriental Insurance or the United India Insurance Co as their financial health has improved after a series of capital infusions, people aware of the development said. To further strengthen their financial health, the government is expected to infuse Rs 3,000 crore in the public sector general insurance companies during the current quarter. Both Oriental Insurance and the Chennai-based United India Insurance may be able to generate interest from the private sector because of their improved financials, sources said. The process of choosing a suitable candidate for privatisation has just started and will take some time to decide, sources said while not ruling out the possibility for listed New India Assurance, where government stake stands at 85.44 per cent.
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Last year, the Union Cabinet headed by Prime Minister Narendra Modi cleared proposal to provide capital support to National Insurance, Oriental Insurance and United India Insurance
The infusion will be done after the supplementary demands for grants is passed by Parliament which will reconvene on March 8. The capital infusion will enable the three public sector general insurance companies to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes and enhance the capacity to raise resources and improve risk management.