![]() ![]() In the Budget 2018-19 speech, the then Finance Minister Arun Jaitley had announced that the three companies would be merged into a single insurance entity. The capital infusion, it added, will enable the three public sector general insurance companies to improve their financial and solvency position, meet the insurance needs of the economy, absorb changes and enhance the capacity to raise resources and improve risk management. ![]() “To ensure optimum utilisation of the capital being provided, the government has issued guidelines in the form of KPIs (key performance indicators) aimed at bringing business efficiency and profitable growth,” the statement said. The government in Budget 2020-21 had made a provision of Rs 6,950 crore for capital infusion in these three insurance companies in order to maintain the requisite minimum solvency ratio.īriefing reporters about the Cabinet meeting, Minister of Information and Broadcasting Prakash Javadekar said that recapitalisation will make the government-owned insurance companies more stable. The Rs 12,450 crore capital infusion approved by the Cabinet includes Rs 2,500 crore provided to these companies during 2019-20, it said, adding Rs 3,475 crore will be released immediately, while the balance Rs 6,475 crore will be infused later in one or more tranches. “Further, the process of merger has been ceased so far in view of the current scenario and instead, the focus shall be on their profitable growth,” an official statement said.Īlso Read: Global economy to contract by 5.2 per cent in 2020 as coronavirus continues to spread: Report ![]()
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