LIC investment in ONGC profitable: Namo Narain Meena

NEW DELHI: Amid rising speculation that the country’s largest insurer incurred heavy losses in a bid to save the Rs 12,400-crore disinvestment auction plan of ONGC, the government, in a statement to Parliament, clarified that Life Insurance Corporation of India had, on the contrary, made profits on the investment.

Responding to a query in the Rajya Sabha on Tuesday, Minister of State of Finance Namo Narain Meena said LIC had invested Rs 20,493.60 crore in ONGC till March 31, 2012, which is now valued at Rs 21,752.91 crore.

With a luke warm response from investors to ONGC auction, which was touted as the first of many more such deals, the government brought on board LIC to save face. The minister also denied any investigation into how such a large transaction was allowed after the closure of the stock market.

This was following media reports that had stated that a Parliamentary panel had directed the IRDA to enquire into LIC’s share purchase in ONGC. Meena added, “ LIC has reported that as on 31 March 2012, total investment in PSUs is in profit.” According to the statement, LIC’s Rs 59,116 crore investment is valued at at Rs 59,851 crore. LIC has invested in many PSUs, including the Shipping Corporation of India, NMDC and PTC India .