The Modi government is sacrificing public money by investing in loss-making public sector units it is using the LIC as an instrument
New Delhi– The Congress on Wednesday accused the Modi government of sacrificing public money by investing in loss-making public sector units and said it was using the LIC as an instrument to meet its ends.
Congress leader Ajay Maken cited an RBI report and claimed that the life Insurance Corporation of India (LIC) has doubled its investment in risky Public sector undertakings in the last five years from Rs 11.94 lakh crore to Rs 22.64 lakh crore.
“The LIC, public sector unit that makes investments in the stock market, has invested 10.7 lakh crore in such risky PSUs in the last five years alone, while the total investment made from 1956 till 2014 in such risky undertaking was only Rs 11.94 lakh crore,” he said.
The Modi government is sacrificing public money by investing in loss-making public sector units. It is using the LIC as an instrument to meet its ends said Maken.
Maken claimed that the government used around Rs 30000 crore of the LIC to bail out loss-making IDBI after the corporation increased its stake by 51 per cent after infusing Rs 21000 crore in IDBI in 2018.
The biggest concern in the country is the slowdown of the economy and unemployment which the government is not addressing.
The RBI statistical handbook on the economy has some shocking revelations, he claimed.
“In 2012-2013, it was Rs 3.30 lakh crore, while in 2017- 2018 it rose Rs 7.41 lakh crore, an increase of Rs 4.11lakh crore, which is more than double” Maken said.