CM Joseph Vijay Urges PM Modi to Reconsider 3% NLC India Stake Sale

On Thursday, Tamil Nadu Chief Minister C Joseph Vijay wrote to Prime Minister Narendra Modi from Chennai, urging the Union government to reconsider its proposed disinvestment of up to a three percent stake in NLC India Ltd. The Chief Minister expressed strong opposition to the dilution of the public sector undertaking's equity, stating that it would undermine its strategic character and weaken long-term public ownership.

In his letter to the Prime Prime Minister, Chief Minister Vijay emphasized that the public sector undertaking (PSU) serves as a strategic national asset rather than just a listed company. He noted that NLC India Ltd is heavily involved in national energy security, mineral development, and critical infrastructure.

The Chief Minister warned that any further dilution of the Union government's stake would set an undesirable precedent. He stated that the decision raises significant concerns that extend beyond financial considerations to the long-term interests of Tamil Nadu, its people, and the nation’s energy security.

Highlighting the deep-rooted connection between the state and the company, Chief Minister Vijay pointed out that NLC is intrinsically linked to Tamil Nadu through its origin, growth, and ongoing operations. Headquartered in Neyveli, the company operates its key lignite mines and major pit-head thermal power stations within the state.

According to the Chief Minister, the PSU was built over several decades using land acquired through the state’s machinery. This expansion was made possible through the administrative support of the Tamil Nadu government, infrastructure development, rehabilitation measures, and the active cooperation of the local people.

Recalling the state’s long-standing opposition to the dilution of the Centre's stake in NLC, Chief Minister Vijay asserted that public sector enterprises established and expanded with sustained support from the host state should remain under effective government ownership and control.