TN: CM Vijay urges Centre to halt NLC stake sale
Chennai, June 25
Tamil Nadu Chief Minister C. Joseph Vijay has written to Prime Minister Narendra Modi, urging the Union government to reconsider its decision to divest a further stake in Neyveli Lignite Corporation India Ltd, calling the public sector enterprise a "strategic national asset" closely linked to the State.
In his detailed letter, Vijay expressed "deep concern" over the Centre's proposal to dilute its equity in NLC India through an Offer for Sale (OFS) of up to three per cent of the company's paid-up equity. The disinvestment plan comprises a base offer of 2 per cent, along with a 1 per cent green-shoe option.
The Chief Minister said the Tamil Nadu government is firmly opposed to any further reduction of the Centre's stake in NLC India. He stressed that the PSU occupies a unique position in the State's industrial and economic landscape, with its origins, expansion and continuing operations deeply rooted in Tamil Nadu.
Highlighting the company's long association with the State, Vijay noted that NLC India is headquartered at Neyveli, where its major lignite mines - Mine I, Mine IA and Mine II - and pit-head thermal power stations are located.
He pointed out that the enterprise was built over decades, with land acquired through the State government, extensive administrative support, infrastructure development, rehabilitation measures, and the cooperation of the people of Tamil Nadu.
Vijay argued that the State therefore has a legitimate and enduring stake in the future of the PSU. He described NLC India as far more than a listed company, saying it plays a vital role in energy security, mineral development and critical infrastructure.
He cautioned that any dilution of the Government of India's shareholding, even if limited, would set an undesirable precedent for public ownership of strategically significant enterprises.
The Chief Minister warned that the issue extends beyond financial considerations and has implications for the long-term interests of Tamil Nadu, its people and the country's energy security.
Reiterating the State's position, he said public sector enterprises such as NLC India, established and expanded with sustained support from host States, should remain firmly under effective government ownership and control.
Vijay urged PM Modi to reconsider the proposed disinvestment and expressed hope that the Centre would give due weight to the State government's concerns and principled objections.
— IANS
Reader Comments
This is exactly the kind of state-centre cooperation we need more of. NLC has been a model PSU - reliable power, good jobs, and they've actually taken care of their workers and local communities. Why fix something that isn't broken? If the Centre needs money, there are better ways than selling off our national assets. Hope Modi ji listens
I've lived in Tamil Nadu for 10 years now, and NLC is like the backbone of this region. The company doesn't just generate power - they run schools, hospitals, and maintain entire townships. Privatisation could mean all that corporate social responsibility disappears. The state has every right to be concerned about something so deeply tied to its people's welfare
While I appreciate CM Vijay's concern, I think we need to look at the bigger picture. PSUs can be inefficient, and some disinvestment can bring in private capital and expertise. But NLC is different - it's not just about efficiency, it's about energy security. The Centre should at least keep majority control while maybe diluting a smaller portion. Moderation is key
I'm from Neyveli, born and raised. My father worked in NLC for 35 years. This company IS our identity. Every family in this town depends on it somehow. Selling shares might look good on paper for the budget, but you can't put a price on the social contract between a PSU and its host community. Please don't gamble with our future for short-term gains
S Sarah B Interesting how We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.