CM Vijay Urges PM to Drop NLC Disinvestment Plan
Tamil Nadu Chief Minister says reducing Centre's stake in NLC could weaken public ownership of a strategic energy enterprise and seeks withdrawal of the proposed share sale.
CHENNAI, Jun 26: Tamil Nadu Chief Minister C. Joseph Vijay has urged Prime Minister Narendra Modi to withdraw the Centre’s proposal to divest an additional 3 per cent stake in Neyveli Lignite Corporation (NLC) India Ltd., arguing that the move could undermine public ownership of one of the country’s key strategic enterprises.
In a letter addressed to the Prime Minister on Thursday, Vijay expressed concern over the Centre’s decision to sell up to 3 per cent of its equity in NLC through an Offer for Sale (OFS), comprising a base offer of 2 per cent and an additional 1 per cent green-shoe option. He said Tamil Nadu has consistently opposed any reduction in the Union government’s holding in the public sector company.
According to the Chief Minister, the Centre currently owns 72.2 per cent of NLC India as of March 31, 2026. If the proposed sale is completed, the government’s stake would decline to 69.2 per cent.
Vijay stressed that NLC India plays a vital role in India’s energy security, lignite mining and power generation, making it much more than a commercially listed company. He said any further reduction in the Centre’s ownership could set an undesirable precedent for strategic public sector undertakings that are critical to the nation’s infrastructure and long-term development.
The Chief Minister also highlighted Tamil Nadu’s long-standing contribution to the growth of NLC. He noted that the company, headquartered in Neyveli, was established through land acquired with the support of the state government, backed by administrative assistance, infrastructure development, rehabilitation measures and the cooperation of local communities over several decades.
Emphasising the strategic and economic importance of the enterprise, Vijay appealed to the Prime Minister to reconsider the disinvestment proposal in the larger public interest and retain the Centre’s majority stake in NLC.
