Humungous land assets a major hurdle in the PSU privatisation process

Large land holdings with public sector companies can scare off potential investors, who have to deal not only with issues about pricing of the land, but also about ownership rights

How many commercial buildings in Delhi name themselves as Jeevan something? There are seven of those, just a few among the large posse of buildings and land assets held by LIC, India’s largest financial sector company that the government plans to list in FY22. 

LIC's land holdings are so vast, that in the valuation exercise of the company, it was decided to estimate those separately. The other two of LIC’s assets being estimated are an actuarial valuation of its life insurance business, and the percentage of the Indian capital market it holds in its vaults. These are gargantuan exercises. 

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