Proposal to dilute five per cent stake in NLC "is on": MD

Despite opposition from Tamil Nadu Government and some political parties, Neyveli Lignite Corporation today said the proposal to divest five per cent stake in the state-owned firm "is on" and it would not affect its public sector undertaking status.
"The disinvestment is as per the Government of India guidelines. This five per cent dilution is very small. As per SEBI guidelines there should be 10 per cent (of public share holding). We are having 6.64 per cent now and balance about five per cent is proposed by Department of Disinvestment..", Neyveli Lignite Corporation, Chairman and Managing Director, B Surender Mohan told reporters here.

"10 per cent is minimum requirement as per SEBI guidelines. Already they (Government) have done 10 per cent (dilution) in Coal India. For us, the process is on by the Department of Disinvestment," he said.
He clarified that the dilution of five per cent stake would not affect the Public Sector Undertaking status. "As Navaratna company we must have 10 per cent (public shareholding)", he said.
Tamil Nadu Chief Minister Jayalalithaa recently had written a letter to Prime Minister Manmohan Singh opposing the move of diluting five per cent stake in NLC.
DMK President M Karunanidhi had said the dilution of five per cent stake would only earn the Manmohan Singh government further opposition in Tamil Nadu. CPI-M and MDMK too opposed the move.