Jayalalithaa defends decision to buy NLC shares

PTI Updated - July 22, 2013 at 03:30 PM.

A file photo of Tamil Nadu Chief Minister, J. Jayalalithaa.

Defending her Government’s decision to buy the 5 per cent NLC shares that the Centre proposed to disinvest, Tamil Nadu Chief Minister J. Jayalalithaa today said that the shares would otherwise have been sold to private entities.

Joining the issue with her arch rival and DMK President M. Karunanidhi, she said that in a letter dated June 8, Prime Minister Manmohan Singh had defended the stake sale.

Karunanidhi had last week said that the State Government should have remained firm against the stake sale in order to pressure the Centre to drop its move to sell the shares.

Jayalalithaa said while there was no favourable response to her initial plea for exempting Neyveli Lignite Corporation from SEBI guidelines on public shareholding pattern, she had later offered that her Government be sold those stakes.

Subsequently, SEBI okayed the proposal during talks with the State Government team, she said in a statement.

Karunanidhi had said that had the Government remained firm on its initial demand of not to sell the shares to anyone, and with pressure due to indefinite fast by workers, the Centre could have exempted NLC and withdrawn its decision like it did in 2006.

“His remarks are made out of frustration and jealousy. What was Karunanidhi doing when some amendments were proposed to the shareholding pattern of Central PSUs in 2010, when his party was in power in state and Centre,” she said.

He had no right to “belittle” her efforts on the issue, she said, adding that if she had not made the offer on behalf of the State Government, it would have been sold to private players.

Published on July 22, 2013 08:51