New Delhi: The government has started a fresh assessment of the capital needs of the three general insurers to help them meet the regulatory requirements. While no allocation has been made in the FY24 budget, the government may infuse around ₹3,000 crore as it firms up its plan to divest one general insurer in the next fiscal.
“We are in discussion with the three general insurers. They have taken a series of steps to make their operations more efficient while bringing down their expenses. We may seek this through supplementary demand for grants within this fiscal year,” said an official aware of the developments, adding that the government will support its companies to turn things around.
The government had infused ₹5,000 crore in FY22 into three state-run general insurers, and so far it has pumped in around ₹18,000 crore into these loss-making firms. A large part of this capital was allocated to wage revisions.