Chennai, June 25:
Expressing concern over the Centre’s sudden move to dilute its stake in the profit making Neyveli Lignite Corporation India Limited (NLCIL), a Navratna PSU under the Ministry of Coal, DMK Parliamentary Party Leader Ms Kanimozhi on Wednesday urged Union Minister for Coal and Mines G Kishan Reddy to withdraw the proposed disinvestment of three per cent of stake considering its strategic important, profitable operations, and its significant contribution to the economy and employment generation.
In a letter to Mr Kishan Reddy, the DMK Thoothukudi Lok Sabha MP sought his intervention regarding the Union Government’s sudden decision to disinvest a 3% stake in NLCIL, situated at Neyveli in Cuddalore District of Tamil Nadu.
Pointing out that the proposed disinvestment move has caused widespread concern among employees, trade unions and the general public, she said this move comes despite NLCIL’s strong financial performance and profitability, with the company earning a profit of approximately Rs. 3,769 crores during the current financial year.
The reasons and rationale behind this disinvestment remain unclear given its consistent performance and strategic importance, Ms Kanimozhi noted.
She recalled that previous attempts to dilute the Government’s stake in NLCIL were met with strong opposition. In 2006, a proposal to divest a 10% stake was withdrawn following widespread protests by workers, engineers, officials and various welfare associations. Similarly, in 2013, when a 5% stake sale was proposed, the Tamil Nadu Government intervened by purchasing 3.56% of the shares, thereby helping to preserve the public sector character of the enterprise.
In these circumstances, the present decision to sell an additional 3% stake has created apprehension among employees and the public that it may gradually erode the Government’s ownership and eventually pave the way for privatisation of the company, Ms Kanimozhi, who is also the DMK Deputy General Secretary, said and urged the Centre to reconsider and withdraw the proposed disinvestment of 3% stake in NLC India Limited, considering NLCIL’s strategic importance, profitable operations, and its significant contribution to the economy and employment generation.