Reconsider proposed stake sale in Govt firm Neyveli Lignite: CM Vijay to PM Modi
&imwidth=600&imheight=450&format=webp&quality=medium "Reconsider proposed stake sale in Govt firm Neyveli Lignite: CM Vijay to PM Modi")
Tamil Nadu Chief Minister Vijay
Chief Minister Vijay mentioned in his letter that the Government of Tamil Nadu strongly opposes, in principle, any further dilution of the Government of India’s equity in NLC.
Tamil Nadu Chief Minister Vijay has written to Indian Prime Minister Narendra Modi, expressing deep concern regarding the Indian Government's proposed move to proceed with the disinvestment of its equity in Neyveli Lignite Corporation India Limited (NLC).
Neyveli Lignite Corporation (known as NLC India Limited) is primarily owned by the Government of India, which holds a majority stake in the company through the Ministry of Coal. Established in 1956, NLC has been engaged in lignite mining and power generation, with its operations spreading throughout the country. NLC is headquartered at Neyveli in Cuddalore district, Tamil Nadu, where its principal lignite(brown coal) mining operations and its major lignite-based thermal power stations are located.
Referring to the proposed Offer for Sale of up to 3% of the Indian Government's paid-up equity in NLC(comprising a base offer of 2% and an additional 1% green-shoe option), Chief Minister Vijay mentioned in his letter that the Government of Tamil Nadu strongly opposes, in principle, any further dilution of the Government of India’s equity in NLC. This issue is of special significance to Tamil Nadu, as NLC India is intrinsically linked to the State through its origin, growth and continuing operations.
"The enterprise has been built over several decades on land acquired through the State machinery, supported by extensive administrative facilitation, infrastructure development, rehabilitation measures and the cooperation of the people of Tamil Nadu. The State, therefore, has a legitimate and enduring stake in the future of this strategically
important public sector undertaking," the letter stated.
Reiterating the state's stance, Vijay's letter stated that Tamil Nadu has consistently maintained that the Government of India’s shareholding in NLC India should not be reduced further. Citing that public sector enterprises of this nature, particularly those established and expanded with the sustained support of a host State over decades, should continue to remain firmly under effective Government ownership and control, Chief Minister Vijay requested the Government of India to reconsider its proposed disinvestment.
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CM Vijay's letter to the PM Modi comes after a similar letter was sent by DMK MP Kanimozhi to India's Minister for Coal and Mines, where she stated that the proposed stake sale has caused widespread concern among employees, trade unions, and the public. "I have urged the Union Government to withdraw the stake sale and take appropriate steps to safeguard the interests of all stakeholders, while protecting the strategic and public-sector character of NLC," the DMK Parliamentarian from Tamil Nadu had said.
