Tamil Nadu Challenges NLC Disinvestment, Labels It a Strategic Asset

Tamil Nadu CM Joseph Vijay formally challenges the Union Government's disinvestment of NLC India Ltd, citing its strategic value in energy security and infrastructure. He urges PM Modi to reconsider, emphasizing the long-term state and national interests that surpass financial factors and cautioning against precedence in public ownership dilution.

Tamil Nadu Chief Minister Joseph Vijay has firmly objected to the Central Government's plan to disinvest equity in Neyveli Lignite Corporation India Limited (NLC), calling on Prime Minister Narendra Modi to reconsider the decision. The disinvestment proposal includes a 3% offer for sale of paid-up equity, with a 2% base offer and an additional 1% green-shoe option.

In his letter, Vijay stressed the importance of NLC India as a strategic national asset, highlighting its significant role in energy security, mineral development, and critical infrastructure. He warned that reducing government equity compromises public ownership in strategically essential enterprises and could set a risky precedent for future actions.

Emphasizing the long-standing support from Tamil Nadu in building NLC's operations, CM Vijay articulated that such enterprises, initiated with substantial backing from host states, should remain government-controlled. He expressed hope that the Prime Minister would consider these strategic concerns, urging a reevaluation of the disinvestment move to protect the state's and nation's interests.