The details of Tamil Nadu Public Sector Units buying a portion of Neyveli Lignite Corporation stake which is to be disinvested by the Union Government is expected to be finalised on Monday.
Chief Minister J. Jayalalithaa, responding to a letter from Prime Minister Manmohan Singh, said State Government officials will meet with officials of the Securities and Exchange Board of India and the Union Government in Mumbai on July 15 to finalise the details of the transaction.
The State PSUs are prepared to buy the entire 5 per cent stake that is to be disinvested in Neyveli Lignite. But since 6.44 per cent of the company’s shares are now with the public, it would be enough if just 3.56 per cent is offered for sale to meet the regulatory norm mandating 10 per cent public holding.
Jayalalithaa said she was confident that the transaction would help resolve the labour unrest with workers protesting the proposed disinvestment.
She said, following a letter from the Union Disinvestment Secretary to the Tamil Nadu Chief Secretary on July 6 to appoint a nodal officer to handle the transaction, the State Government had nominated the Finance Secretary.
A team of State Government officers comprising the Secretaries of Finance and Planning and Development; and Joint Secretary, Industries, had discussed the issue on July 10 with the Disinvestment Secretary.
They had discussed details including the State PSUs eligible to acquire the stake, the eligibility criteria in the offer document to ensure that the disinvestment is carried out in favour of these entities, the pricing formula and the timeline for the transaction.