Senior Madhya Pradesh Congress leader Digvijaya Singh Monday accused the Central government of forcing the state-run Life Insurance Corporation (LIC) to bail out cash-strapped entities in contravention of norms.
Addressing a press conference, Singh, who is the Congress nominee from Bhopal Lok Sabha constituency, expressed apprehensions that LIC might not be able to return money of policy holders if the current situation continues.
The former chief minister also alleged that condition of PSUs like BSNL (Bharat Sanchar Nigam Limited) and BHEL (Bharat Heavy Electricals Ltd) is also deteriorating.
"There were around 37 lakh LIC agents in the country, but 25 lakh of them have stopped working during the past five years due to policies of the Narendra Modi government," Singh said.
He alleged that the Centre forced the LIC to give an interest-free loan of Rs 1.50 Lakh crore to the Railways.
"Similarly, the Centre also forced the LIC to bail out IDBI Bank having higher NPAs. As per rules, the LIC cannot buy more than 15 per cent of shares in any company or institution, but in case of IDBI Bank the insurance company was forced to purchase 51 per cent of shares.
"However, despite purchasing the shares, the management control still does not rest with the LIC. If this situation remains, the LIC won't be able to return the money of its policy-holders in future," he said.
Singh said BSNL and BHEL are not doing well.
"About 45,000 employees of BSNL are set to be retrenched. The state-run company is being ruined to benefit private cellular operators. PSUs like BHEL are being destroyed by the Modi government as strength of BHEL employees has come down to 6,000 from 22,000," claimed the Congress leader.
He alleged that only private insurance companies have made profit ranging from Rs 6000 crore to Rs 12000 crore through agriculture insurance whereas the farmers have not benefited under the Pradhan Mantri Fasal Bima scheme.
"The Congress-led state government would set up its own insurance company to provide cover to farmers as promised in the party manifesto for last year's assembly elections," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)