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SKT Cabs

Don't pack until you... • 25d

Indian government-owned companies are often used to provide funds to large Indian private corporates. There’s a strategic reason behind this. If a corporate group like Adani were to go abroad for funding and, by chance, defaulted, the foreign investors would aggressively pursue recovery — legally and financially — from the top management. They would extract every penny they could. But if the same funding is routed through a government entity like LIC — which holds the savings of India’s middle class — and a loss occurs, the narrative is simply that "LIC suffered losses," and citizens are told their money is gone. No serious accountability, no pressure on the corporate management, and no real consequences. It’s simple: public institutions bear the risk, while private corporates enjoy the gains. see the example of banks

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