The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement on January 19, 2017.

THE CPI(M) strongly opposes the clearance given by the union cabinet for disinvestment of shares in the five public sector general insurance companies. The decision is to disinvest by 25 percent shares in each of these companies.

By this step, the government is weakening the nationalised general insurance companies which have been running well. They have been regularly earning profits and contributing to the government’s revenue.

Unlike the private sector insurance companies, it is the general insurance companies that are executing the insurance based welfare schemes announced by the government.

The Modi government is undertaking this disinvestment measure as part of the overall plan to liberalise and privatise the financial sector. The way will be opened for more participation of foreign insurance companies. This is not in the interests of the people and the country. The CPI(M) calls upon all democratic sections to oppose this harmful measure.