Neyveli Lignite Corp has informed the Coal Ministry that Tamil Nadu government and employee unions are opposing the proposal to divest 5 per cent stake in the PSU to raise up to Rs 6,000 crore.
“A few days back, Neyveli Lignite (NLC) wrote to the Coal Ministry stating the resentment from both trade unions and the Tamil Nadu government on the stake sale,” a source close to the development said.
The Cabinet on Tuesday deferred a decision on proposal to divest stake in NLC Corp, which is under the administrative control of Coal Ministry.
The finance ministry had moved a proposal for sale of over 7.8 crore shares, or 5 per cent shares, through an offer for sale in the Tamil Nadu-based miner.
“There is a letter from the Chief Minister of Tamil Nadu addressed to the Prime Minister and, I think, the PM may consider first replying to that letter,” Finance Minister P. Chidambaram had said.
The government is looking to raise around Rs 5,000 crore to Rs 6,000 crore from the stake sale.
The disinvestment department had communicated to the Cabinet Committee on Economic Affairs that there is no other option but to divest the stake in the company, as it is the only way to make the company compliant with the minimum public shareholding norm.
The government currently holds 93.56 per cent stake in Neyveli Lignite. SEBI has set a deadline of August 2013 for all listed central public sector units to have a minimum 10 per cent public shareholding.