Neyveli Lignite Corporation employees are set to go on an indefinite strike starting tonight, which will hit electricity generation and lignite mining at the Central Government enterprise.
According to trade union sources, a majority of the 28,000-30,000 workers, staff and contractors are participating in the strike to protest the Union Government’s plan to divest five per cent stake. Over 20 unions have come together to organise this strike.
Power impact
According to G. Kuppuswamy, President, CITU-NLC, the strike will impact over 2,490 MW of power generation of which about 1,400 MW is supplied to Tamil Nadu and the balance to the other Southern States.
The employees are opposed to any disinvestment in the public sector enterprise.
The Government announced plans to divest the stake, estimated at about Rs 466 crore, to meet the Securities and Exchange Board of India norms mandating minimum 10 per cent public holding in public sector enterprises by August.
The Union Government holds a 93 per cent stake with the balance with institutions and the public.
The Tamil Nadu Government is against such a divestment to a private sector entity and has offered to buy the stake through State public sector enterprises.
According to reports, the Union Government has referred the proposal to SEBI.
Q1 record
According to a press release from NLC, the company produced 66.36 lakh tonnes of lignite, six per cent more than the corresponding quarter last year, between April and June 2013 against the targeted 65.60 lakh tonnes.
Power generation also increased to 5,377 million units (4,850 million units) which is a six per cent growth.