Govt considers selling 25% stake in LIC to plug widening budget gap: Report

The government plans to amend the act of parliament under which the state-run LIC was set up to prepare for the sale, the people said, asking not to be identified as the discussions were private

India is planning to seek cabinet’s approval to sell 25% stake in the nation’s largest life insurer, people with knowledge of the matter said, as Prime Minister Narendra Modi seeks resources to plug a widening budget gap.

The government plans to amend the act of parliament under which the state-run Life Insurance Corp. of India was set up to prepare for the sale, the people said, asking not to be identified as the discussions were private. The timing of the insurer’s initial public offering will be depend on market conditions, and the sale is likely to be done in tranches,