Employees' unions of the Life Insurence Corporation (LIC) on Saturday opposed the Narendra Modi government's plan to sell its stocks in the state-run insurance behemoth and threatened to go on a nationwide strike. They said that the move is "against the national interest" and will affect crores of policyholders of LIC.

In her maiden budget, Finance Minister Nirmala Sitharaman said the Life Insurance Corporation of India (LIC) will be listed as part of the government disinvestment initiative. The government proposes to sell a part of its holding in LIC through IPO, she said while unveiling the Budget 2020. "We strongly oppose the government's plan to sell a part of its shares in LIC and the move is against the national interest," a spokesman of an employees' union told.

Established in 1956, LIC is fully-owned by the central government and has the highest market share in the life insurance segment in the country. He said that LIC has contributed a lot to the economic growth and the dilutions of the government's stake in the company will "endanger the economic sovereignty of the country".

The employees' unions of LIC across the country will stage nationwide protests if the government goes ahead with its plan, he said. He alleged that it will also affect crores of policyholders of LIC.

Reacting to the Modi government's plan to sell LIC, West Bengal Chief Minister Mamata Banerjee said that she was shocked and appalled to see that the Centre was "amusing the heritage & legacy of public institutions."

"I am shocked & appalled to see how the Central Government plans to ambush the heritage & legacy of public institutions. It's the end of a sense of security. Is it also the end of an era?" Mamata wrote on Twitter.