The unions representing the Neyveli Lignite Corporation (NLC) employees opposing the Centre’s plan to divest a portion of its stake in the company are not satisfied with the Tamil Nadu Government offering to acquire the stake.
Over 20 unions representing the workers, staff, engineers, executives and contractors are against the Centre’s proposal to divest a 5 per cent stake in the Central Public Sector Enterprise in lignite mining and power generation.
The Government of India holds over 93 per cent of the equity in Neyveli Lignite. The balance is with institutions and the public.
The Centre had announced the plan to divest a 5 per cent stake to meet the Securities and Exchange Board of India norms mandating minimum 10 per cent public holding in public sector enterprises by August this year.
Union representatives said they are opposed to any divestment by the Centre or dilution of its Central Public Sector status.
S. Rajavannian, General Secretary, Neyveli Labour Progressive Federation, said the unions are not for divestment in any form. Neyveli Lignite is a profit-making undertaking, which, in the last two years, has given the Centre over Rs 900 crore revenue.
G. Kuppuswamy, President, CITU-NLC, said the unions which have come together to protest the divestment are also not for Tamil Nadu taking a stake in the Central PSU.
NLC’s employees are against any form of divestment.
The protest is aimed at preventing any dilution of the Central Government stake, they emphasised.