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The country's largest insurance company LIC is going to earn money by selling land and buildings. LIC has made a plan of about 58 thousand crores. According to media reports, LIC can earn money by selling its real estate assets present in different cities. The company also has many plots and commercial buildings. After the railways and the army, LIC has the most land and real estate assets. Whose value is being estimated in lakhs of crores of rupees. Let's try to understand why LIC needs to sell its property.

LIC's property is at prime location

LIC has property in prime locations of many cities of the country. This includes Jeevan Bharti building in Connaught Place, Delhi. If we talk about Kolkata, then LIC building in Chittaranjan Avenue is also very important. On the other hand, LIC also has a building or property in Mumbai, the financial capital of the country. SBI building on Mall Road in Mussoorie, Uttarakhand, also belongs to LIC. If we talk about the valuation of LIC's assets, then it is Rs 51 trillion. LIC is the largest insurance company in the country as well as the largest institutional investor.

what is the planning going on

In a media report, sources have revealed that LIC is busy with a plan. Many options are being discussed at the internal level of LIC. In which it is very important to find out about the valuation of assets. Along with this, it is also being considered that what could be the best option to monetize LIC's property. On the other hand, for the process of selling assets, the valuation of the company's buildings can be done afresh. According to the final valuation, the value of LIC's properties was Rs 50,000 to 60,000 crores. At present, its real value can be up to 5 to 6 times.

That's why this plan is being made

​LIC's profit in FY 2024 was Rs 40,676 crore, while in FY 2023 the company's profit was Rs 36,397 crore. According to sources in the media report, if LIC sells its assets, then the company's profit can increase. On the other hand, after the asset sale, the new owner can also be given permission to redevelop the building and use it. LIC can also form a new company to manage and monetize its assets. The biggest thing is that some of the company's buildings are in very prime locations. To sell them, changes will have to be made in the LIC Act.

This plan is not being made for the first time

This is not the first time that LIC is making such a plan. LIC had earlier also tried to sell its property. The entire plan failed due to legal matters. On the other hand, many buildings and properties of LIC are stuck in legal complications. LIC is trying to monetize its assets at a time when the company is facing tough competition from private insurance companies. You can guess this from the total premium income of the company in the financial year 2024. In which only 0.22 percent increase has been seen.