Jaya's proposal on NLC disinvestment forwarded to Sebi: Jaiswal

The Tamil Nadu CM had written to PM asking her govt be allowed to buy 5% shares of NLC

Coal minister Sri Prakash Jaiswal today said a request from Tamilnadu Chief Minister J Jayalalithaa to address the concerns of workers and trade unions on the proposed disinvestment of Neyveli Lignite Corporation (NLC) have been forwarded to the market regulator Securities and Exchange Board of India (Sebi).

Jayalalithaa is understood to have proposed, in a recent letter to Prime Minister Manmohan Singh, that the state government be allowed to buy 5% shares of NLC in order to retain the public sector character of the company. Market regulations require a Navratna company to have a minimum of 10% public float. After the proposed divestment, the centre's stake in NLC would come down to 89%.  

"The suggestion of Chief Minister regarding divestment of shares of NLC through special arrangements to the undertakings of the Government of Tamilnadu has been referred to Sebi for examination whether such sale is permitted within the Securities Contract (Regulation) Rules of 1957," Jaiswal said in a statement. He urged the workers and trade union members not to resort to strike.

NLC is facing stiff protests over the disinvestment decision and 17 trade unions have already threatened to go on indefinite strike beginning the midnight of July 3 until the disinvestment decision is withdrawn. The government could raise around Rs 466 crore from the disinvestment.