NLC Unions threaten to go on strike if govt decides to divest

There were similar proposals to divest shares in NLC, in 2002 and 2006, however the govt had to withdraw them due to stiff opposition

The Unions at Neyveli Lignite Corporation (NLC) have threatened to go on a strike if the Government of India decided to goahead with its plan to dilute five % stake in the Corporation.

Around 14 Unions, which are representing over 17,500 workers at the Navaratna company, which comes under Ministry of Coal, feared that they will loose their rights and reservations will also go off. The other major concern is, if the private investor come on board it will lead to job reduction, said Anbu, president of the ruling AIADMK party backed Union at NLC.

“All the 14 Unions are opposing and we will go on strike, if the Government decided to goahead with the proposal,” he said at the sidelines of NLC's AGM at Chennai today.

B Surender Mohan, chairman and managing director, NLC said that various unions in NLC have conveyed their disagreement on Government's plan to divest share in the Corporation, which was conveyed to the Government.

The major unions in NLC includes Communist Party of India (Marxist), Labour Progressive Federation (LPF) and Anna Workers’ and Staff Union (AWSU).

It may be noted that there were similar proposals to divest shares in NLC, in 2002 and 2006. However, the government had to withdraw from the plan following the stiff opposition from the trade unions in NLC.

Meanwhile, the Corporation is planning to offer shares to their employees at a discounted price. Each employee would get 200 shares at a discounted price, said Mohan.

“We have written to the Government in this regard,” he said. It may be noted, today Government of India is the single largest shareholder in the company with 93.5 %.

As part of raising money through its disinvestment plant, in some of the PSUs, the Government was planning to dilute five % of its stake in NLC for around Rs 700 crore.

The other major shareholders in the Corporation include insurance companies, corporate houses and others.

Meanwhile at the inter-ministerial group meeting held recently a merchant banker was appointed for divestment, Mohan did not disclose the banker's name.

Some of the Banker were on the race includes SBI Capital, ICICI Securities, IDBI, IDFC and Credit Suiz (according to a report published from delhi, it is six players).

Meanwhile, the company set a target to double its generation capacity and turnover also. At present the generation capacity of the NLC is 2740 MW.