Vijay urges Centre to reconsider NLC India stake sale

Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to halt the proposed disinvestment of up to 3 per cent stake in NLC India Ltd, describing the PSU as a strategic national asset vital to Tamil Nadu's economy, energy security and industrial development

Chennai: 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 (NLC) 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.

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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.