LIC big market player, not only to bailout divestment: FM

The govt is confident of meeting the ambitious disinvestment target of Rs 69,000 crore

Confident of meeting the "ambitious" disinvestment target of Rs 69,000 crore this fiscal, Finance Minister Arun Jaitley today said the government has moved fast so far and all routes are open on this front, including strategic sale of hotels.

He also dismissed suggestions that it was LIC which was bailing out disinvestments and said the state-run insurer invests in public sector issues just like the public offers from the private sector.

"We have an ambitious target for this year. Seven more months of this financial year are left," Jaitley told reporters here at a press conference on the last day of his four-day visit to Singapore and Hong Kong.

"In the last two months, we have moved much faster, but markets have been in somewhat turmoil," he said in reply to queries on whether the market conditions would impact the disinvestment drive.

"Do you hit the market when it is unpredictable or do you want it to stabilise? In fact the Indian Oil disinvestment took place on the day of the great fall after devaluation in China," Jaitley said.

On queries about LIC being roped in to bail out the disinvestments, the Minister said, "LIC is the largest mover of the Indian stock market and therefore in any public issue also it will have an edge.

"LIC is not a body which invests only to bail out the government in disinvestment. In the issues by private companies, LIC also participates. It stocks the shares as part of its investments and then sells them at an appropriate time," he said.