Mercury rising in lignite town over NLC selloff

CHENNAI: In the next couple of days, the lignite town of Neyveli is set to get national attention. For, major political parties will be converging there to outbeat each other in stonewalling the move by the UPA government to revive the disinvestment process in the public sector Neyveli Lignite Corporation (NLC).

The ruling DMK, which had thwarted the disinvestment process in 2006, was the first to raise its voice this time in Parliament when the party���s Rajya Sabha MP K Kanimozhi said the party is not in favour of the policy in core sectors. But, the party did not rake up the issue further and was waiting for the disinvestment department to move further on the front.

But the opposition has now hijacked the issue from DMK and called for a series of protest meetings. PMK founder S Ramadoss has declared that the party's labour wing will organise a fast at Neyveli on Friday against the government's move to sell 10% stake in NLC.

He said since the government had already disinvested 6.5% in the corporation and listed the shares, the party will not allow further sale of shares. For PMK, which drew blank in the Lok Sabha Elections, it is a crucial issue to retain its base in the Vanniayar dominated belt.

Supporting her ally's stand, AIADMK general secretary J Jayalalithaa has also announced that the party and union leaders will organise protest meetings at Neyveli on Friday evening.

She declared that her party will not allow disinvestment in NLC when it made a net profit of Rs 821 crore in 2008-09 and has remained the backbone for industrial production by supplying power. She assailed the DMK government for not caring for the interest of working class.

DMK also does not want to be left behind in this political game. Former North Chennai MP and president of party���s labour wing, Labour Progressive Federation, C Kuppuswamy, told ET: "We have not yet politicised the issue. But, we have called for a fast at Neyveli on July 4 against disinvestment."

LPF secretary M Shanmugam declared that the federation will caal for a strike once the disinvestment is announced. It represents majority of the 19,000 permanent workmen in NLC. Kuppusamy said NLC has to be differentiated from other PSUs while implementing the disinvestment policy. It is a major source of power supply for the state at low cost. NLC supplies 1,200 mw to TNEB at Rs 2.75 per unit and the board pays more for drawing from other sources. When pointed out the Centre is trying to sell only 10% stake, he said, "We don���t want to allow them to open a pandora's box."

Officials at NLC said they have no clue about the disinvestment process. In any case, they felt, it will be a hard decision for the government to take considering the growing opposition and its fall out on its normal operations. NLC CMD R Ansari said in Chennai recently that the corporation will go by the decision of the government.