Govt may set up GoM to expedite merger of three insurance companies

Frail financial health of firms, difference of opinion among depts creating a roadblock

The Union government is planning to form an alternative mechanism, or a group of ministers (GoM), led by Finance Minister (FM) Nirmala Sitharaman, to expedite the process of merging three public sector insurance companies.

The move comes as the merger has been facing roadblocks, owing to the frail financial health of the insurance firms and a difference of opinion among government departments over the process.

The FM-led panel may look into whether the insurance companies need to be merged or acquired by the financially strong entity or if some of the units can be put up for strategic sales, instead