DMDK opposes stake dilution in NLC

Joining the chorus against divestment in Neyveli Lignite Corporation, principal opposition in Tamil Nadu Assembly DMDK today said the Centre's finances would improve substantially if the huge tax arrears of Rs 4.83 lakh crore was collected.
"Tamil Nadu is depending so much on the power the NLC is producing. If the Centre starts to sell five per cent shares in NLC and eventually if it becomes privatised, power tariff could be hiked. Also, policy to privatise a PSU cannot be accepted," DMDK founder Vijaykant said in a statement.
Contending that the sum of Rs 466 crore sought to be raised through five per cent stake sale in NLC did not matter much to the Centre, which was handling over Rs 10 lakh crores, he said, "A report says that the government is yet to get a tax arrears of Rs 4.83 lakh crore. If this is collected, the Centre's finances could have improved substantially."

"Those who have not paid the tax are the rich and not the poor. Is it justified to sell the NLC shares to private parties, instead of collecting tax from the rich?" he asked.
Ruling AIADMK, DMK and PMK have already slammed the Centre for its decision to sell five per cent stake, saying the reason that the decision had been taken in line with Securities Exchange Board of India guidelines was not acceptable.