Public sector companies to receive capital

The Indian government is mulling a move to inject INR3000-INR5000 crore worth of capital in three public sector general insurance companies based on performance and requirements.

Sources told the Business Standard that the capital infusion help improve the financial health of the general insurance firms — National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company.

Fund support was given to the weak general insurance companies last financial year, some more fund requirement is there to bring them back on profitability path, sources said.

The three public sector general insurers are short of solvency margin and to improve operational efficiencies an external consultant will be appointed soon.

Four public sector firms through General Insurers’ Public Sector Association of India or GIPSA have issued a request for proposal (RFP) to reorganise the insurers and achieve profitability and employee development.

“There is a proposal for restructuring the organisation to bring in profitable growth and employee development through performance management and capability management, in alignment with the Key performance indicators (KPIs) devised by the Public Sector General Insurance Companies (PSGICs),” the RFP said.

The last date for submission of bids is June 2, 2022.