CM Vijay urges Centre to reconsider NLC disinvestment plan

CHENNAI: Tamil Nadu Chief Minister C Joseph Vijay on Thursday strongly opposed the Union Government's decision to divest up to 3 per cent of its equity in NLC India Limited through an Offer for Sale (OFS), urging the Centre to reconsider its decision.

In his letter written to Prime Minister Narendra Modi, the Chief Minister has expressed the Tamil Nadu government's strong opposition to any further dilution of the Centre's stake in the Neyveli-based public sector enterprise. He said NLC India is closely linked with Tamil Nadu through its origin, growth and continued operations, making the issue significantly important to the State.

Vijay pointed out that NLC India is headquartered in Neyveli and its major lignite mines and thermal power stations are located in Tamil Nadu. He said the enterprise was developed over several decades on land acquired by the state government with administrative support, infrastructure development, rehabilitation measures and the cooperation of the people of Tamil Nadu.

"The State, therefore, has a legitimate and enduring stake in the future of this strategically important public sector undertaking," he said, adding, "Tamil Nadu government is of the considered view that NLC India is not merely a listed company but a strategic national asset engaged in energy security, mineral development and critical infrastructure."

Describing NLC India as a strategic national asset vital to energy security, mineral development and critical infrastructure, the Chief Minister warned that reducing the Centre's stake would set an undesirable precedent for public ownership of strategically important public sector undertakings. He added that such a move could affect the long-term interests of the State, its people and the country's energy security.

Reiterating Tamil Nadu's consistent stand that the Government of India's shareholding in NLC should not be reduced further, Vijay requested Prime Minister Modi to review the proposed disinvestment decision and expressed hope that the Centre would give due consideration to the State government's concerns and principled objections.