CM Vijay opposes proposed NLC stake sale, writes to PM
Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to withdraw the Union government’s proposal to reduce its stake in Neyveli Lignite Corporation India Limited (NLC India).
In a letter to the PM, Vijay expressed strong opposition to the planned disinvestment, which involves the sale of up to 3% of the Centre’s equity through an Offer for Sale mechanism. The proposal includes a 2% base offer along with a possible additional 1% under a green-shoe option.
The Chief Minister stressed that NLC India has a deep connection with Tamil Nadu, where its headquarters and major operations are located. He noted that the company has grown over decades with substantial support from the State, including land acquisition, infrastructure development, administrative assistance, and rehabilitation efforts undertaken with the cooperation of local communities.
According to Vijay, NLC should be viewed as a strategic national asset rather than merely a listed public company. He argued that further reduction in government ownership could set an undesirable precedent for public sector enterprises that play a critical role in energy security, mineral development, and infrastructure.
The Chief Minister reiterated Tamil Nadu’s longstanding position that the Centre should retain effective ownership and control of NLC India. He requested the Union government to reconsider the disinvestment proposal and take into account the concerns raised by the State government.