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Despite the Madras High Court's Order, Neyveli Lignite Corporation (NLC) employees have started their indefinite strike from Wednesday night.
It may be noted that the Court had issued an interim stay order restraining the workers from going on strike.
The strike was called by 16 unions against the Centre's decision to divest 5% stake in the company.
Meanwhile, the company has said production was not impacted due to the strike.
S Rajavannian, general secretary, NLC Labour Progressive Federation, which is backed by the political party Dravida Munnetra Kazhagam (DMK), confirmed that the employees are on strike.
"We didnot hear anything from the Centre till 7 pm last evening, so workers have gone on strike," he said.
The Unions had set the Wednesday night deadline for the Centre to withdraw its decision, failing which they had threatened to go on a strike.
R Udayakumar, secretary, Anna Workers and Staff Union, which is affiliated to All India Anna Dravida Munnetra Kazhagam (AIADMK) also confirmed the strike and said "We (Union) are only protesting, but the workers have decided to go on a strike".
B Surender Mohan, chairman-cum-managing director of Neyveli Lignite Corporation (NLC), said that all the officers have joined work and were able to manage the production as usual. Around 2,300-2,400 MW generation is there and we are supplying around 1,000 MW to Tamil Nadu.
"Despite around 12,000 regular employees and 11,000 contract workers not reporting to work, we could manage the production with our officers," said Mohan.
Asked whether the company will go back to the Court or will take any action against the workers, he said, "We have to examine the situation, right now the work is going with police protection".
Last Thursday, NLC had approached the Madras High Court against the strike, arguing that the strike would affect the lives of the public since the company is supplying power to various states and a strike could affect the power supply.
"Yes, the court has issued a stay order. NLC is a public utility and any issue in its operations would affect the public. What I heard is that the Court has advised the unions not to engage in strike based on this," said Mohan.
NLC has a capacity to generate 2,490 MW at Neyveli and another 250 MW at Barsingsar in Rajasthan. It currently supplies around 1,100 MW to Tamil Nadu alone and also extends supply to other states. Besides, it is also supplying lignite to independent power producers for power generation.
Earlier, an official said that the strike could significantly reduce the operations of the company, since a portion of the executive staff were also expected to enter the strike.
"If the unions would go for strike as indicated, there would definitely be a decrease in our production, but it would not be zero," said the official earlier.
On Tuesday, the ruling AIADMK and various workers' unions organised a protest against the proposed divestment.
"NLC has paid around Rs 1,292 crore as tax and dividend to the central government in 2012-13. But the government is trying to divest the company, which would fetch them around Rs 466 crore," said Rajavanian.
Earlier, Tamil Nadu Chief Minister J Jayalalithaa's letter to the Prime Minister had proposed that the 5% stake of the govt 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).
In response to this, Union Finance Minister P Chidambaram on Monday said that the government would consider the offer of Tamil Nadu government. He added that he would ask the Capital Markets division to quickly consult Securities and Exchane Board of India (Sebi) whether it would be permissible under the regulations.
However, cross section of the workers' unions did not agree to the proposal and said that they would think of their future plans if the Centre agrees with the State Government's proposal.
