Chennai , 25 June (H.S) :

Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to withdraw the Centre's proposed disinvestment of Neyveli Lignite Corporation (NLC) India Ltd, describing the company as a strategic national asset whose public ownership should not be diluted.

In a letter to the Prime Minister, Vijay expressed the State government's strong opposition to the Union government's decision to divest up to three per cent of its equity in NLC India through an Offer for Sale (OFS), comprising a base offer of two per cent and an additional one per cent green-shoe option.

The Chief Minister said Tamil Nadu has consistently opposed any reduction in the Centre's stake in NLC India, arguing that the public sector undertaking has played a crucial role in the State's industrial development and India's energy security.

Vijay noted that NLC India is headquartered in Neyveli, where its principal lignite mines and major pit-head thermal power stations are located. He said the PSU had grown over several decades with land acquired through the State government, extensive 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, the Chief Minister said.

He maintained that NLC India is far more than a listed company, calling it a key national asset engaged in energy security, mineral development and critical infrastructure. According to Vijay, any further dilution of the Government of India's equity, however small, would set an undesirable precedent for strategic public sector enterprises.

The Chief Minister also cautioned that the issue extends beyond financial considerations and has long-term implications for Tamil Nadu, its people and the country's energy security.

Urging the Centre to reconsider the proposal, Vijay said enterprises such as NLC India, which were established and expanded with sustained support from host States, should continue to remain firmly under effective government ownership and control. He expressed hope that the Union government would give due consideration to Tamil Nadu's concerns before proceeding with the proposed stake sale.

---------------

Hindusthan Samachar / Arun Lakshman