 "TN opposes decision to dilute stake in Neyveli")
In a letter to the prime minister today, Tamil Nadu Chief Minister
J Jayalalithaa said NLC was the largest central public sector unit in Tamil Nadu. It was also the largest central power producer located in a backward region of the state providing employment to more than 17,500 persons.
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The employees of NLC have a justifiable apprehension regarding any move to disinvest even a portion of Union government equity in the company.
“Instead of reassuring the large work force, the concerned ministry and the company management seem to be trying to justify the divestment based on specious and artificial regulatory requirements.”
The state government’s co-operation is being sought to convince the labour unions to accept the proposed divestment.
The AIADMK led Government has been consistently and strongly opposed to privatising any portion of the NLC and we are of the firm view that the Public Sector character of Neyveli Lignite Corporation (NLC) should be maintained without any dilution.
"In this connection, I find that the Government of India is attempting to create an artificial regulatory crisis based on certain recent amendments to the Securities Contracts (Regulation) Rules, 1957," Jayalalithaa said. "Quoting these rules as the basis for dilution in the Government of India’s holding in Neyveli Lignite Corporation (NLC) is neither appropriate nor desirable."
She further claimed that any proposal to disinvest even a small portion of the share holding would lead to considerable labour unrest. Given the current acute power shortage in the State, any disruption of power supply from Neyveli Lignite Corporation (NLC) would very adversely affect the interest of the State.
"I strongly urge you to explore alternatives to the proposed disinvestment," said the Chief Minister.
The Government of India is planning to disinvest a further 5% of Government of India’s equity holding in Neyveli Lignite Corporation (NLC) in order to meet an artificially placed regulatory requirement under the recently amended Securities Contracts (Regulation) Rules 1957.