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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 (NLC).
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)
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