Letters: LIC's strong case

This refers to the report "Long-term call, not govt nudge behind 4.5% CIL buy, says LIC" (February 4). The Life Insurance Corporation (LIC) of India's defence that it was not under government instruction when subscribing to public sector undertaking (PSU) divestment does not appear transparent, though it can be true. It is just not in the case of Coal India, but in all PSU divestments this year that LIC has bought out about half of the total sum. In the case of ONGC, LIC took over 90 per cent. In Coal India's case, the circumstantial evidence is strong, since despite LIC's mega subscription, the issue barely got subscribed. LIC's stand can have credibility if LIC had been buying Coal India shares in the secondary transactions in significant quantity before the offer for sale. In fact, the LIC management will do well to remember that their only concern should be to provide benefits to the insured, including lowering the premium or increasing the bonus.

When the CEO or chairman is appointed by the government, there is no need for a written instruction to invest; a phone call from the North Block does it.

P Datta Kolkata

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