The Union Government is more than willing to sell portion of its holding in Neyveli Lignite Corporation (NLC) to the Tamil Nadu government, said one of the senior ministers from the Government. It may be noted, Centre is planning to dilute five per cent stake in NLC, while objecting the move Tamil Nadu Government offered that it is ready to buy the stake in NLC.
Speaking to reporters in Chennai, E M Sudarsana Natchiappan, Minister of State, commerce and industry, Government of India said that “by all means, the state government can buy it and we are not opposed to it”. He also said why five per cent, the state government can even buy 10 per cent in the company. It may be noted, NLC is one of the major source for the State's electricity requirment.
The Minister said, the Union Government's intension is not to sell the stake to any private or multi-national corporation houses.
His response was to question on Tamil Nadu Chief Minister J Jayalalithaa's letter to the Prime Minister, in which she proposed that the five per cent Government of India’s shareholding in NLC be offered to one or more of Government of Tamil Nadu‘s State Public Sector Undertakings, such as the Tamil Nadu Industrial Development Corporation (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tamil Nadu Industrial Investment Corporation (TIIC).
These PSUs come within the definition of ‘Qualified Institutional Buyers’ (QIBs) and hence would be eligible to purchase the shares of NLC under an Institutional Placement Programme. SEBI may be asked to work out a special arrangement for such a placement of shares of NLC with Government of Tamil Nadu’s Public Sector Undertakings at the approved rate," she said.
Responding to NLC employees plans to go on an indefinite strike from July 3, against the Government decision, the Minister said, even NLC workers could buy the shares in exchange of their one-day's wage.
Meanwhile, agitation and protest against Government's decision, to dilute stake, at Neyveli and in the state is strengthening. The ruling AIADMK party has said that it will stage state-wide agitation on July 2 protesting the Centre's decision to disinvest five per cent stake in NLC, which it expects to fetch around Rs 466 crore to the exchequer.
In a statement on Saturday, the Chief Minister said, the protests, to be headed by various senior leaders, will condemn the Centre for trying to cede the profit-making public sector undertaking to private players and for not giving a favourable response to her demand that in case it goes ahead with the sale, the shares should be sold to the state government as sought by her.
