The Bharatiya Mazdoor Sangh (BMS), the country’s largest trade union, on Thursday said it will launch an agitation if the Cabinet decision of listing state-run general insurance companies was not withheld. The Cabinet on Wednesday allowed five general insurance firms — New India Assurance, United India Insurance, Oriental Insurance, National Insurance and General Insurance Corporation of India — to list on the bourses and approved divestment of government’s stake in these firms gradually to 75% over a period of time from 100% now.
“BMS doesn’t find any justification in the Cabinet decision for divesting stakes in insurance companies. We will be compelled to hold agitation along with other public sectors,” BMS’ general secretary Virjesh Upadhyay said.
Though the government’s intention to divest stake in these firms are aimed at infusing fresh capital which might help them to enhance their operations and footprint, BMS opposes the decision, saying, “This is unfortunate that the government is finding FDI as a solution and remedy to all financial problems and targeting well-settled, profit-making undertakings for divestment.”
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“It is an established fact that our PSUs have been the backbone of the economy and became a cause of sustainability during recession,” it said.