‘Government does not advise LIC on investment in Adani Group’: Finance Minister Nirmala Sitharaman. Image: Sansad TV
Finance Minister Nirmala Sitharaman on Monday said her ministry does not issue any advice or instructions to Life Insurance Corporation of India (LIC) on investment decisions of the public sector insurance company. In a written reply in the Lok Sabha, Sitharaman clarified that LIC’s investment in Adani Group companies was as per the due process and was part of its portfolio in equity as well as debt investments.
“The Finance Ministry does not issue any advice/directions to LIC in matters relating to investment of LIC funds,” Sitharaman said, adding that decisions related to LIC’s investments in companies – be it debt or equity – are taken ‘only by LIC after rigorous due diligence, risk assessment and fiduciary compliance’.
Allegation was made in American media
This strong clarification from Sitharaman came after a US media report in October, which alleged that Finance Ministry officials had ‘made a plan for LIC to invest in the Adani Group’ came at the center of criticism in the US.
Sitharaman said, “LIC has invested Rs 5,000 crore in secured non-convertible debentures (NCDs) issued by Adani Ports Special Economic Zone (APSEZ) due in May 2025. This investment has been made after conducting due diligence in accordance with the standard operating procedures (SOPs) laid down as per their board approved policy.”
Note that LIC’s investment in Adani Group companies is Rs 38,658.85 crore. The company has also made a further investment of Rs 9,625.77 crore in the debt instruments of the group. Among Adani Group firms, LIC has the highest investment in Adani-Total Gas Ltd at Rs 8,646.82 crore.
LIC has assets worth more than Rs 41 lakh crore
LIC’s investment of Rs 8,470.60 crore in Adani Enterprises, the flagship company of Adani Group, ranks 27th in its overall list. Ambuja Cements, with an investment of Rs 5,787.73 crore, is ranked 40th. The investment of Rs 5,681.10 crore in APSEZ is ranked 43rd in LIC’s total investment list, while Rs 3,729.68 crore invested in Adani Energy Solutions Ltd is ranked 65th, Rs 3,486.10 crore invested in Adani Green Energy Ltd is ranked 71st and Rs 2,856.82 crore invested in ACC is ranked 81st.
Pointing out that LIC, being India’s largest institutional investor, has assets worth more than Rs 41 lakh crore, Sitharaman emphasized that LIC’s investments are not just in one company or group, but are spread across different sectors and 351 publicly listed stocks.
Since 2014, LIC’s investment in India’s top 50 companies has increased 10 times from Rs 1.56 lakh crore to Rs 15.6 lakh crore. He also informed that as of September 30, 2025, the book value of LIC’s investments in Nifty 50 companies is Rs 4,30,776.97 crore, which is 45.85 per cent of its total equity investments.
LIC’s biggest loan in private sector is on HDFC Bank
Giving information about LIC’s top investments, FM Sitharaman said that LIC’s highest equity investment is in Reliance Industries Limited (RIL) at Rs 40,901.38 crore, followed by Infosys – Rs 38,846.33 crore, TCS – Rs 31,926.89 crore, HDFC – Rs 31,664.69 crore and HUL – Is Rs 30,133.49 crore. LIC’s largest loan in the private sector is on HDFC Bank, where the total outstanding is Rs 49,149.14 crore. This is followed by Rs 14,012.34 crore on RIL, Rs 13,435 crore on ICICI Bank, Rs 11,075 crore on Shriram Finance and Rs 9,625.77 crore on Adani Ports and SEZ Limited.
“Such decisions are governed by the rules of the Insurance Act, 1938 as well as regulations issued from time to time by the Insurance Regulatory and Development Authority of India (IRDAI), the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) (wherever applicable),” Sitharaman said.
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