CHENNAI: AIADMK general secretary Edappadi K Palaniswami on Monday urged the State government to purchase the 3 per cent stake in Neyveli Lignite Corporation (NLC) India Ltd that the Centre proposes to divest, saying the move would help prevent further privatisation of the Navratna public sector undertaking.
In a statement, Palaniswami criticised the Union government and the NLC management for their decision to sell a 3 per cent stake through the stock market. He said a profitable public-sector enterprise should remain under government control and not be open to private investors.
Pointing out that NLC had posted a profit of around Rs 3,769 crore during the current financial year, he said there was no justification for diluting the government's stake in a financially strong company.
Recalling earlier attempts to divest NLC shares, the AIADMK leader said the Centre was forced to withdraw a similar proposal in 2006 following widespread protests by trade unions and employee associations.
He also referred to the 2013 decision of the then Chief Minister J Jayalalithaa-led government to purchase about 3.56 per cent of NLC shares worth around Rs 500 crore to prevent privatisation. He urged the present State government to adopt a similar approach and acquire the shares being offered for sale.
Palaniswami reiterated that the AIADMK would continue to oppose any move to privatise NLC and extend support to its employees by participating in public protests against the Centre's decision.