Tamil Nadu Chief Minister C Joseph Vijay on Thursday strongly opposed the Union Government’s decision to disinvest from NLC.

“I write to convey the Government of Tamil Nadu’s deep concern regarding the decision of the Government of India to disinvest in Neyveli Lignite Corporation India Limited (NLC) through an offer for sale of up to three per cent of the paid-up equity, comprising a base offer of two per cent and an additional one per cent green-shoe option, as notified,” Vijay said in a letter to the Prime Minister Narendra Modi.

Stating that the Tamil Nadu government will strongly oppose any further dilution of the Central Government equity in NLC, he said, “This issue is of special significance to Tamil Nadu, as NLC India is intrinsically linked to the State through its origin, growth and continuing operations”.

“The State, therefore, has a legitimate and enduring stake in the future of this strategically important public sector undertaking”, he said, adding, “Tamil Nadu government is of the considered view that NLC India is not merely a listed company but a strategic national asset engaged in energy security, mineral development and critical infrastructure”.

Noting that the dilution of the Centre’s equity, however limited, set an undesirable precedent in respect of public ownership of such strategically significant enterprises, the chief minister said, “It also raised concerns that extend beyond financial considerations and touch upon the long-term interests of the state, its people and the nation’s energy security”.

He said Tamil Nadu has consistently maintained that the Union Government’s shareholding in NLC India should not be reduced further. “Public sector enterprises of this nature, particularly those established and expanded with the sustained support of a host state over decades, should continue to remain firmly under effective government ownership and control”, he added.

“In these circumstances, I request the Union Government to reconsider its decision relating to the proposed disinvestment and I sincerely hope that the Centre will give due consideration to the concerns and principled objections of the Tamil Nadu Government”, he said.