The Securities and Exchange Board of India (SEBI) has given nod to the proposal of Tamil Nadu government-run companies acquiring the remaining 3.56% in centrally-run Neyveli Lignite Corporation (NLC), to meet the minimum 10% public shareholding in government enterprises. The public now holds 6.44% in the company.
Post this development, four government companies would together invest Rs 500 crore to buy the stake, viz, Tamil Nadu Industrial Development Corporation, State Industries Promotion Corporation of Tamil Nadu, Tamil Nadu Urban Finance & Infrastructure Development Corporation and Tamil Nadu Power Finance & Infrastructure Development Corporation.
Also, with this approval, the joint strike by the worker unions stands cancelled. All the worker unions in the Corporation went on to an indefinite strike after Centre, which held 93.56 per cent stake in the company, had proposed to divest 3.56% per cent in the open market, a move which workers saw as a precursor for privatization.
Nevertheless, the way for the State to purchase the shares was paved following discussions in Mumbai among officials from Tamil Nadu, led by K. Shanmugam, Principal Secretary (Finance), and those of the Centre and Securities and Exchange Board of India (SEBI).
| Company Name | CMP |
|---|---|
| NTPC | 405.60 |
| Tata Power | 436.05 |
| Adani Power | 215.45 |
| Power Grid Corp | 321.00 |
| Torrent Power | 1658.00 |
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