LIC sets up project appraisal wing

Mumbai, Feb 3: Life Insurance Corporation (LIC) on Wednesday took the first concrete step towards offering term lending to industrial and...

Mumbai, Feb 3: Life Insurance Corporation (LIC) on Wednesday took the first concrete step towards offering term lending to industrial and infrastructure-related projects by inaugurating project appraisal and equity research wing in its investment department.

The new wing, inaugurated by finance ministry special secretary (insurance) BK Chaturvedi, will also take up research activities relating to the equity/debt markets.

"Credit rating of the privately-placed debt instruments would also receive exclusive attention. These will be taken up with the objective of facilitating a more informed decision-making in the corporation," an LIC release said.

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The insurance major plans to streamline its investment functions to cater to the long-term funds requirement of the industry and infrastructural needs of the economy.

The corporation has been lending to various sectors while the project appraisals are carried out by the financial institutions. While the system of consortium lending will continue, a team of 24professionals will take up appraisal of projects to enable independent term lending for the LIC.