Karunanidhi ups the ante on NLC stake sale

Published: 23rd June 2013 08:27 AM  |   Last Updated: 23rd June 2013 08:27 AM   |  A+A-

A number of political parties in the state, on Saturday, expressed their opposition to the Cabinet's decision to disinvest five per cent shares in the Neyveli Lignite Corporation (NLC) and wanted the Union Government to drop the proposal immediately.

In a statement, DMK chief M Karunanidhi recalled the letter written by Chief Minister J Jayalalithaa on the issue and his own statement against any such move to disinvest shares in the public sector unit.

Karunanidhi said the Rs 466 crore that the Centre was planning to raise from the divestment was not a significant amount.

While the Centre could argue that it was enforcing norms laid down by the Securities and Exchange Board of India (SEBI), which mandates that at least 10 per cent of stakes in state-owned units should be held by the public, he said the suggestions of the Chief Minister that the Securities Contracts (Regulation) Rules, 1957 can be amended to make a special exemption for NLC, or the company can be delisted by buying back stakes currently in public hands, should be considered.

MDMK General Secretary Vaiko and PMK leader Anbumani Ramadoss also echoed the sentiments of Karunanidhi and said the move to divest NLC shares should be dropped.


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