Modalities may be finalised on Monday

Agitating Neyveli Lignite Corporation workers said they would withdraw their 11-day strike in 24 hours if the Centre accepted Tamil Nadu's proposal to purchase the stake

Representatives of the Tamil Nadu and the Central governments, as well as the capital market regulator, will meet on Monday in Mumbai to discuss the proposed stake sale in state-run Neyveli Lignite Corp Ltd (NLC), said Chief Minister J Jayalalithaa.

She said her government was hopeful that the details about the structuring and execution of the transaction would be finalised in the meeting. Earlier, Prime Minister Manmohan Singh had asked Tamil Nadu to nominate a nodal officer to finalise the modalities of the transaction.

“I expect that the details of structuring and execution of the transaction will be finalised in this meeting. This would be a positive development which I am confident would enable an early resolution of the labour unrest in Neyveli,” she said in a letter to the prime minister.

About 174 workers began an indefinite fast, while about 30,000 workers, including 13,000 contract employees, went on strike on July 3, demanding the Centre withdraw its decision to sell a five per cent stake in NLC  as part of its divestment process. Also, the state-run company has to sell stake to comply with the Securities and Exchange Board of India’s 10 per cent public shareholding norm.

The Tamil Nadu government has asked the Central government to sell the stake to state-based public sector companies.

On July 10,  a state government team, including principal secretary, finance and principal secretary, planning and development, had held talks with the secretary at the Department of Disinvestment on the NLC stake sale.  

“I look forward to a positive outcome of the further discussions to be held on July 15 between government of Tamil Nadu officials, government of India officials and Sebi and the early completion of the transaction,” Jayalalithaa added.

Meanwhile, agitating NLC workers said they would withdraw their 11-day strike in 24 hours if the Centre accepted Tamil Nadu's proposal to purchase the stake.

Misgivings remain
Speaking to reporters, R Udayakumar, secretary, Anna Workers and Staff Union, said Prime Minister Manmohan Singh’s letter to Jayalalithaa had not cleared the doubts and misgivings of NLC workers.

“If the prime minister accepts the proposal of the chief minister and gives a clear cut statement, NLC unions will consider withdrawing the strike within 24 hours.”