CM Joseph Vijay Urges PM Modi to Stop Proposed 3 Percent Stake Sale in NLC India

Tamil Nadu Chief Minister C Joseph Vijay on Thursday wrote to Prime Minister Narendra Modi from Chennai, urging him to reconsider the Union government's proposed disinvestment of up to three percent of stakes in Neyveli-headquartered NLC India Ltd. The Chief Minister strongly opposed any further equity dilution of the public sector undertaking, warning that reducing public ownership would weaken the strategic character of the enterprise and impact the long-term interests of the public.

In his letter to the Prime Minister, Chief Minister Vijay stated that NLC India Ltd is not merely a listed company but a strategic national asset engaged in energy security, mineral development, and critical infrastructure. He argued that further dilution of the Union government's equity would set an undesirable precedent and raise concerns that extend far beyond financial considerations to affect the nation's energy security.

The Chief Minister highlighted the deep historical and operational ties between the public sector undertaking and the state, noting that NLC is intrinsically linked to Tamil Nadu through its origin, growth, and continuing operations. Headquartered in Neyveli, the company operates its key lignite mines and major pit-head thermal power stations within the state.

Vijay pointed out that the enterprise was built over several decades on land acquired through the state's machinery. This growth was made possible through continuous administrative support, infrastructure development, rehabilitation measures, and the cooperation of the people of Tamil Nadu.

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