Govt set to form GoM on merger of 3 non-life insurance companies
Former Finance Minister Arun Jaitley had announced the merger plan in his February 2018 budget speech.
There could be a further delay in the Narendra Modi government’s proposal to merge the three state-owned non-life insurance companies - Oriental Insurance, National Insurance and United India Insurance, according to sources. The reason: the Centre is looking to set up a group of ministers (GoM) to chart an action plan to go ahead with the merger, the sources said.
Not rushing onto the decision, the government aims to better understand the fallout from such a major exercise as well as possibly understand the business model, the sources added.
Former Finance Minister Arun Jaitley had announced the merger plan in his February 2018 budget speech. The merged entity would eventually be listed on the stock exchanges, as per the plan.
The July amendments to the insurance laws clearly show that there is a clear intent to move forward, but there could be possibly some delay in this particular proposal in terms of the timelines.
The development comes three weeks after reports that the three state-owned non-life insurance firms have sought a capital infusion of Rs 12,000 crore from the Centre, to stay afloat and conduct business.
The idea to merge the three insurers was to create a stronger and larger insurance company sustainable in the long run. The other two state-owned entities, New India Assurance and General Insurance Corporation of India are listed on the exchanges.
First Published: Jan 9, 2020 4:24 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM
Odisha: Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 10:22 AM
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM