IANS/Chennai
Tamil Nadu Chief Minister J Jayalalithaa yesterday said the central government and the market regulator have agreed to her proposal of state PSUs (public sector units) acquiring 3.56% of the central government’s stake in Neyveli Lignite Corporation Ltd (NLC).
She said the transaction would cost the five state public sector undertakings (SPSUs) around Rs5bn.
The five companies are: Tamilnadu Industrial Development Corporation Ltd (Tidco), State Industries Promotion Corporation of Tamil Nadu Ltd (Sipcot), Tamilnadu Industrial Investment Corporation Ltd (TIIC), Tamil Nadu Urban Finance and Infrastructure Development Corporation Ltd (Tufidco) and Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd (Powerfin).
In response to the development, the striking workers have called off their agitation.
In a statement issued here Jayalalithaa said: “At a meeting in Mumbai yesterday, the central government and the Securities and Exchange Board of India (SEBI) have agreed to the state government’s proposal of the centre diluting 3.56% in NLC in favour of state PSUs.”
Jayalalithaa said because of her government’s actions the NLC stake sale to private parties had been stopped.
“The victory is due to my government’s continued action, my own independent steps, workers’ struggle and due to the united voice of the people of the state,” she said.
According to Jayalalithaa, the Sebi regulation of having a minimum public shareholding of 10% in PSUs is a wrong policy.
Political parties in the state had opposed the central government’s decision to divest 5% stake in NLC to meet SEBI norms of having a minimum of 10% public shareholding.