Union Cabinet clears LIC-IDBI deal, to reduce Govt shareholding in Hindustan Copper

New Delhi, Aug 1: The Union Cabinet on Wednesday cleared the purchase of 51 per cent controlling stake in IDBI Bank by state-run insurer Life Insurance Corporation (LIC) and gave its nod to a bill to restore the original provisions of a law on atrocities against Dalits and tribals.

The Cabinet approved the extension of Concessional Financing Scheme for another five years from 2018 to 2023. The Scheme supports Indian entities bidding for strategically important infrastructure projects abroad.

Finance Minister Piyush Goyal said the Cabinet has approved LIC's proposal to acquire 51 per cent stake in IDBI Bank. IDBI Bank will become an arm of LIC after the deal. The government will hold about 45 per cent stake in IDBI Bank after fresh equity issue to LIC. LIC-IDBI Bank deal is a win-win situation for both companies. The deal will help both companies with their customer acquisition.

Union Law Minister Ravi Shankar Prasad has said that the cabinet has approved the establishment of 13 new Kendriya Vidyalaya schools across the country.

Also, the cabinet has approved Rs 1,257 crore interest-free loan to revive three fertilizer units.

Government shareholding in Hindustan Copper (HCL) will be reduced from 76.05 per cent to 66.13 per cent. The cabinet has approved the issuance of fresh equity to the extent of 15 per cent in Hindustan Copper.

The Cabinet decided to restore the original provisions of a law on atrocities against Dalits and tribals. The bill to restore the original provisions of Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act will be brought in Parliament.