DPIIT to soon approach Cabinet on FDI proposal for LIC: Secretary

Industry secretary Anurag Jain on Wednesday said that the Department for Promotion of Industry and Internal Trade (DPIIT) will soon approach the Union cabinet to seek its approval on changes in the foreign direct investment policy to facilitate the disinvestment of Life Insurance Corporation and an inter-ministerial consultation on the matter is in its last stage. "Hopefully it should happen very soon...All the comments which will come (from different departments) will be supportive (of the proposal)," he said during a media interaction.

He also expressed hope that the cabinet would soon take up this proposal.

As per sources, the final proposal would be moved for Cabinet's consideration soon and that the approval is expected by mid-February.


India allows FDI up to 74% in the insurance sector, but this does not apply to LIC, which is governed by the LIC Act.

The government may allow up to 20% foreign investment in the insurer that plans to list by the end of this fiscal year.

The LIC Act does not mention foreign investment. Also, only the central government is allowed to hold more than a 5% stake in the company.