P.R.No.291

P.R.No.291

Tamil Nadu promise ledger
P.R.No.291·25 Jun 2026·dispute

CM Urges PM to Reconsider NLC India Disinvestment

CM Joseph Vijay wrote to PM Narendra Modi opposing the Centre's plan to divest up to 3% of its equity in NLC India Ltd (Neyveli Lignite Corporation) through an Offer for Sale. He said NLC is headquartered in Neyveli with its principal mines and thermal stations in Tamil Nadu, built over decades with state-acquired land and support, making it a strategic national asset in energy security. He urged the Centre to reconsider, stating Tamil Nadu firmly opposes any further dilution of government ownership in the company.
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Press Release Content
Text of the D.O. Letter of the Hon'ble Chief Minister of Tamil Nadu Thiru C. Joseph Vijay addressed to the Hon'ble Prime Minister of India Thiru Narendra Modi requesting reconsideration of the Government of India's decision on the proposed disinvestment of its equity in NLC India Ltd. Hon'ble Chief Minister of Tamil Nadu Thiru C. Joseph Vijay wrote a letter today (25.06.2026) to Hon'ble Prime Minister of India Thiru Narendra Modi requesting reconsideration of the Government of India's decision to sell its equity in the Neyveli Lignite Corporation. I write to convey the Government of Tamil Nadu's deep concern regarding the decision of the Government of India to proceed with the proposed disinvestment of its equity in Neyveli Lignite Corporation India Limited (NLC) through an Offer for Sale of up to 3% of the paid-up equity, comprising a base offer of 2% and an additional 1% green-shoe option, as notified. The Government of Tamil Nadu strongly opposes, in principle, any further dilution of the Government of India's equity in NLC India Limited. This issue is of special significance to Tamil Nadu, as NLC India is intrinsically linked to the State through its origin, growth and continuing operations. NLC India is headquartered at Neyveli, Tamil Nadu, where its principal lignite mining operations — Mine I, Mine IA and Mine II — and its major pit-head lignite-based thermal power stations are located. The enterprise has been built over several decades on land acquired through the State machinery, supported by extensive administrative facilitation, infrastructure development, rehabilitation measures and the cooperation of the people of Tamil Nadu. The State, therefore, has a legitimate and enduring stake in the future of this strategically important public sector undertaking. The Government of Tamil Nadu is of the considered view that NLC India is not merely a listed company but a strategic national asset engaged in energy security, mineral development and critical infrastructure. Any further dilution of the Government of India's equity, however limited, sets an undesirable precedent in respect of public ownership of such strategically significant enterprises. It also raises concerns that extend beyond financial considerations and touch upon the long-term interests of the State, its people and the nation's energy security. Tamil Nadu has consistently maintained that the Government of India's shareholding in NLC India should not be reduced further. Public sector enterprises of this nature, particularly those established and expanded with the sustained support of a host State over decades, should continue to remain firmly under effective Government ownership and control. In these circumstances, I request the Government of India to reconsider its decision relating to the proposed disinvestment. I sincerely hope that the Government of India will give due consideration to the concerns and principled objections of the Government of Tamil Nadu. ************ Issued By: - Director, Department of Information and Public Relations, Chennai-9
Issued By: Directorate of Information and Public Relations (DIPR), Chennai