Neyveli Lignite shares gain as Sebi gives Tamil Nadu consent to buy stake

MUMBAI: Shares of Neyveli Lignite gained momentum in a weak market after the central government confirmed that the market regulator Sebi gave its consent to Tamil Nadu government's proposal to buy centre's 5 per cent stake in the company.

"Sebi is of the view that the proposal could get covered within the guidelines on IPP. However, the exact details needs to be worked-out that require discussions with the officials of the government of Tamil Nadu, Ministry of Coal and Department of Disinvestment," an official statement said.

The Department of Disinvestment ( DoD) had sought Sebi's views on Tamil Nadu government's proposal to buy 5 per cent of centre's stake in NLC disinvestment.

The stock was also in action after the company was allocated 2 coal blocks by the coal ministry for implementing power projects at Sirkali in Tamil Nadu and Neyveli Uttar Pradesh in Ghatampur, UP.

The company is planning to set-up 4000 MW coal based power plants near Thirumullaivasal in Sirkali Taluka and 1980 MW coal based thermal power project in Ghatampur.

At 10:00 a.m.; the stock was at Rs 59.50, up 2.06 per cent, on the BSE. It touched a high of Rs 60.55 and a low of Rs 58.80 in trade today.