BJP against diluting stakes in Neyveli Lignite Corporation

CHENNAI: With Neyveli Lignite Corporation reporting its highest profit since its inception, Centre should not dilute stakes in the Public Sector Undertaking as it would harm the interests of Tamil Nadu besides NLC workers, BJP said today.

Party's state unit president Pon Radhakrishnan, expressed "shock" over NLC Chairman and Managing Director B Surender Mohan's statement that the proposal to dilute five per cent stake was on as it came despite opposition in the state.

While 6.64 per cent of the stakes were already in the public share holding, Centre's decision to divest another five per cent will "push Tamil Nadu into further darkness besides affecting the future of thousands of (NLC) workers," he said.

In a statement here, he said the company had made a profit of Rs 1459.75 crore in 2012-13, the highest since its inception.

"Despite receiving 50 per cent of total power produced from this profit-making organisation, Tamil Nadu is unable to meet its energy requirements. Therefore, considering the welfare of the people, Centre should drop its proposal to dilute stakes in NLC," he said.

Despite opposition from Tamil Nadu Government and political parties including DMK, NLC had said yesterday that the proposal to divest five per cent stake in the state-owned firm "is on" and it would not affect its PSU status.