The Prime Minister, Manmohan Singh, has urged Tamil Nadu Chief Minister J. Jayalalithaa to work towards resumption of normal power generation by Neyveli Lignite Corporation (NLC). Power generation has been affected owing to the strike against the proposed disinvestment of the company.
Resumption of normal power generation is required “so that the southern region, including Tamil Nadu, does not suffer on account of power shortages,” Singh said. The Government has proposed divesting 5 per cent in NLC to meet the minimum public shareholdings as prescribed by the Securities and Exchange Board of India.
The Prime Minister also requested the Chief Minister to nominate a senior officer to coordinate with the Department of Disinvestment and SEBI. This will help to give a final shape to the modalities of arrangement where State Government undertakings can buy the equity. The minimum public shareholding norm is to be complied with by August 8.
Singh reiterated that the proposed 5 per cent disinvestment will neither lead to privatisation nor alter NLC’s public sector character. Now, the Government of India holds 93.56 per cent and the remaining 6.44 per cent is held by others. After the 5 per cent dilution, the Centre’s shareholding will be 88.56 per cent. “The ‘public sector’ character of the company will not be affected at all as long as the Government of India continues to hold more than 51 per cent of the shareholding in NLC…,” Singh said.