DMK Chief Karunanidhi says no to NLC disinvestment

Chennai: DMK chief M Karunanidhi has asked the centre to revoke its decision to sell five per cent of its stakes in the Neyveli Lignite Corporation (NLC) in Tamil Nadu.

The Centre, he adds, should keep in mind the objection expressed by Chief Minister J Jayalalithaa, who had also suggested exempting NLC by bringing about suitable amendments or delisting NLC by buying back the 6.44 per cent in public hands.

The DMK chief says the Centre should remember that similar disinvestment moves were withdrawn in the past following requests from Tamil Nadu. Workers at the Neyveli plant are already preparing to launch an agitation, he says.

Recently, Prime Minister Manmohan Singh had written to Ms Jayalalithaa explaining that the five per cent disinvestment was to meet public shareholding norms for a Navaratna company.

But the Tamil Nadu Chief Minister called it an "artificial regulatory requirement" and had warned the Centre that the move could trigger labour unrest at Neyvelli. She wanted NLC to be run maintaining its public charter, without any dilution. Any disruption at the Neyvelli plant, she had said, would also adversely affect the already power starved state.

Advertisement

Disinvestment of Centre's stakes in NLC has always been a touchy issue in the state. The workers are apprehensive that this could be a small beginning for a complete take over by private companies. Presently, the Centre owns 93.56 per cent of the total share capital. Though the Centre initiated a similar move in 2006, it had to then abandon it following protests by workers and pressure from the DMK which was in power in the state and was part of the union government as well.

NLC produces around 2400 MW of power out of which Tamil Nadu receives 1140 MW. It employs a total of about 27,000 people including 10,000 contract workers.

Advertisement