Centre,TN should act to see NLC exempt from SEBI stipulation

DMK president M Karunanidhi today sought steps to end the stalemate over the NLC disinvestment issue, saying both the Centre and the state should act swiftly to ensure the PSU is exempted from a SEBI stipulation on shareholding pattern.
Referring to Tamil Nadu Chief Minister Jayalalithaa's demand that the Centre sell the five per cent of shares to be disinvested to her government, he expressed apprehensions that such a sale would still be considered as being bought by government companies and not by public, going by SEBI rules.
He said his party-affiliated Labour Progressive Federation has raised apprehensions in this regard and sought exemption for Neyveli Lignite Corporation (NLC) from this.

"Therefore, the sale of five per cent of shares the state government has come forward to buy has to be considered as being sold to public and not government enterprises. NLC has to be given an exemption in this regard," he said in a statement.
This will help end the ongoing crisis as scores of NLC workers have been striking work against the disinvestment proposal, creating apprehensions of power crisis. The Centre and the state government should take steps to create a "conducive atmosphere" for this stake sale, he added.
With the Centre deciding to disinvest five per cent stake in NLC to garner Rs 466 crore, Jayalalithaa had written to Prime Minister Manmohan Singh recently, making an offer that her government would buy the five per cent it wanted to disinvest.

The disinvestment decision has triggered protests in NLC, with 30,000 workers going on an indefinite strike since July 3 in protest, affecting lignite production.