Tamil Nadu Chief Minister J Jayalalithaa, who had expressed her strong opposition to the Centre’s move to divest five per cent equity of Neyveli lignite Corporation ltd (NlC), on Tuesday offered to buy the same through State Government owned public sector undertakings.
The Centre’s move to divest the five per cent equity from NlC, a public sector undertaking enjoying the Nav Rathna status, has created widespread resentment in Tamil Nadu. Trade unions affiliated to various political parties have declared that they would go on strike from July 3. A strike by the NlC workers could exacerbate the power situation in Tamil nady, which is already reeling under severe power shortage.
“I propose that the five per cent Government of India’s shareholding in Neyveli lignite Corporation be offered to one or more of Government of Tamil Nadu’s State Public Sector Undertakings, such as the Tamil Nadu Industrial Development Corporation, State Industries Promotion Corporation of Tamil Nadu and Tamil Nadu Industrial Investment Corporation,” the Chief Minister said in her letter.
She pointed out that the Securities and Exchange Board of India (SEBI) had earlier indicated to NlC, the divestment could be through an institutional placement programme or through any method as may be approved by the market regulator on case-to-case basis.
“The above-mentioned Government of Tamil Nadu’s Public Sector Undertakings come within the definition of ‘Qualified Institutional Buyers’ and hence would be eligible to purchase the shares of Neyveli lignite Corporation under an institutional placement programme,” said Jayalalithaa.
She asked the Centre not resort to disinvestment under the “offer for sale “route under which share sale would be executed at a day’s notice. “This will exacerbate the law and order situation in State,” she added.
“I am afraid that this unrest may spread and continue for a long time, leading to the eventual shutdown of the power plants in Neyveli. You will appreciate that with Tamil Nadu already reeling under power scarcity, such a situation will badly hurt the state’s economy and cause great hardship to the people,” Jayalalithaa said.