Finance Minister Nirmala Sitharaman firmly stated in Parliament on Monday that the government does not direct the Life Insurance Corporation of India (LIC) on its investment choices. This clarification came in response to questions regarding LIC's substantial exposure to the Adani Group.
Parliamentary Assurance on LIC's Autonomy
Answering a starred question on the first day of the winter session, Sitharaman reiterated that the state-run insurer operates independently. The finance ministry does not issue any advisory or direction to LIC on matters related to its investments, she emphasized.
The minister detailed that LIC's investment decisions are taken solely by the corporation itself. These decisions follow a rigorous process of due diligence, risk assessment, and fiduciary compliance. She noted that LIC is governed by the provisions of the Insurance Act, 1938, and regulations from bodies like the Insurance Regulatory and Development Authority of India (IRDAI), the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI).
Context of the Washington Post Report
The parliamentary query followed an investigative report by The Washington Post on October 25. The US newspaper alleged, citing internal government documents and interviews, that officials from the finance ministry and the Department of Financial Services helped draft a plan to channel roughly $3.9 billion of LIC funds into companies of billionaire Gautam Adani.
The report claimed this was a strategy to signal confidence in the Adani Group and encourage other investors, at a time when the conglomerate was facing legal scrutiny in the US and tighter global credit access. The Adani Group has denied receiving any preferential treatment. LIC and the finance ministry did not respond to the newspaper's queries at the time.
Details of LIC's Exposure and Broader Portfolio
In her response, Sitharaman confirmed specific investment details. She revealed that LIC invested ₹5,000 crore in secured non-convertible debentures issued by Adani Ports and Special Economic Zone (APSEZ) in May 2025.
As of September 30, 2025, LIC's total exposure to the Adani Group stands at a significant ₹48,284.62 crore in equity and debt. This spans multiple Adani companies, including:
- Adani Enterprises
- Adani Ports & SEZ
- Adani Total Gas
- Adani Green Energy
- Adani Energy Solutions
- Adani Exports
- Adani Power Maharashtra
- ACC
- Ambuja Cements
Sitharaman also provided context by outlining LIC's major holdings across the market. Its largest public-sector equity exposures include State Bank of India, Coal India Ltd, and Oil and Natural Gas Corporation Ltd. Top private-sector equity investments feature Reliance Industries, Infosys, and Tata Consultancy Services.
In debt instruments, LIC's major public-sector exposures are to entities like Power Finance Corporation and Indian Railway Finance Corporation. Its top private-sector debt investments include HDFC Bank, Reliance Industries, and notably, Adani Ports & SEZ.
The minister's comprehensive statement aimed to underscore the institutional and regulatory framework guiding LIC, distancing the government's role from the insurer's day-to-day investment operations.
