Govt. may allow LIC to fund infra projects

The government may permit Life Insurance Corporation of India (LIC) to fund infrastructure projects of a single company beyond the exposure limit of 10%, In order to improve availability of funds for power projects, the finance ministry is considering a proposal of the power ministry. According to the current rule, LIC has to limit its funding exposure to a maximum of 10% of the net worth (sum of share capital, free reserves and debentures/bonds) of the investee company or 10% of the fund size of the insurer, whichever is lower.