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The Securities and Exchange Board of India has cleared Tamil Nadu’s proposal that State public sector enterprises buy the 5 per cent stake in Neyveli Lignite Corporation (NLC) to be divested by the Centre.
SEBI has agreed to categorise the shares as public holdings to enable NLC meet the SEBI norm of a minimum 10 per cent public shareholding in government enterprises. The public now holds 6.44 per cent and the Centre the rest.
Tamil Nadu Chief Minister J. Jayalalithaa said in a statement that five State public sector enterprises will buy the shares for about Rs 500 crore.
PSU profile
The Tamil Nadu Industrial Development Corporation will buy 25 per cent of the divested shares; State Industries Promotion Corporation of Tamil Nadu 45 per cent; and Tamil Nadu Industrial Investment Corporation, Tamil Nadu Urban Finance and Infrastructure Development Corporation and Tamil Nadu Power Finance Corporation will buy 10 per cent each.
The Chief Minister said the the public sector character of Neyveli Lignite is protected by preventing divestment to the private sector. She urged the workers, who have been on strike protesting against the Centre’s proposal, to give up their agitation. Over 20,000 workers, who have been on strike, crippling mining operations and affecting power generation, resumed work immediately.
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