Tamil Nadu CM Vijay urges PM Modi to halt NLC India disinvestment
Chennai, June 26
Tamil Nadu Chief Minister Joseph Vijay formally wrote to Prime Minister Narendra Modi, strongly opposing the Union Government's decision to proceed with the proposed disinvestment of its equity in Neyveli Lignite Corporation India Limited.
The proposed move involves an offer for sale of up to 3% of paid-up equity, consisting of a 2% base offer and an additional 1% green-shoe option.
In his correspondence, the Chief Minister emphasised that the Government of Tamil Nadu views NLC India not merely as a listed company, but as a "strategic national asset" vital to energy security, mineral development, and critical infrastructure.
The state argued that any dilution of government equity sets a dangerous precedent regarding public ownership of strategically significant enterprises. NLC India is headquartered in Neyveli, and its operations have been built over decades through land acquisition, administrative facilitation, and infrastructure support provided by the state and people of Tamil Nadu.
The Chief Minister noted that the issue raises concerns that extend beyond financial considerations, directly impacting the long-term interests of the state and the nation's energy security.
"The Government of Tamil Nadu 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. Any further dilution of the Government of India's equity, however limited, sets an undesirable precedent in respect of public ownership of such strategically significant enterprises. It also raises concerns that extend beyond financial considerations and touch upon the long-term interests of the State, its people and the nation's energy security," read the letter.
The Tamil Nadu government maintained that public sector enterprises established and expanded with the sustained support of a host state should remain under effective government ownership and control.
Consequently, Chief Minister Vijay has requested that the Central Government reconsider its disinvestment decision, expressing hope that the Prime Minister will give due consideration to the state's principled objections.
— ANI
Reader Comments
As an outsider, I find this interesting. In many countries, disinvestment is seen as a way to improve efficiency and bring in private capital. But I can see why the state feels strongly—energy security is a big deal. Will be watching how this plays out.
Respectfully, while I appreciate the CM's concern, I think the Centre has a point too. NLC India has been lagging in efficiency and innovation. A small disinvestment could bring fresh management ideas. But I agree the state's support over the years can't be ignored. Tough call.
Exactly what I was thinking! Strategic national assets should stay with the government. Look at what happened to Air India—private owners just want profit, not national interest. Vijay is right to push back. Tamil Nadu has built this company with its sweat and land. 💪
I don't get the fuss. It's only 3%—the government will still hold majority. This seems like a political stunt by the CM to score points with the local population. The real issue is NLC's performance, not ownership.
As someone from Neyveli, this hits close to home. My family has generations working at NLC. The company gave us education, healthcare, and jobs. Selling it off bit by bit feels like losing a family member. Vijay ji, stand firm! 🇮🇳
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