Expressing confidence that the Centre would still reconsider the decision to disinvest in the Neyveli Lignite Corporation, Chief Minister J Jayalalithaa on Tuesday wrote to the Prime Minister to consider selling the stake to the State’s PSUs.
She said the SEBI had earlier indicated to NLC that under its guidelines it is possible for the shareholding in NLC to be divested, inter alia, through an Institutional Placement Programme (IPP) or through any other method as may be approved by SEBI, on a case by case basis, and said that the mechanism she had proposed could be facilitated by SEBI.
She said the PSUs of the TN government - TIDCO, SIPCOT and TIIC came within the definition of Qualified Institutional Buyers, and hence would be eligible to purchase the shares of NLC under the IPP.
“SEBI may be asked to work out a special arrangement for such a placement of shares of NLC with the TN government’s PSUs at the approved rate,” she said.
She also expressed apprehension on the possibility of the disinvestment proceeding under the recently amended ‘offer of sale’ methodology prescribed by SEBI.
“Such a surreptitious move could seriously exacerbate the law and order situation in TN. Hence, I request you not to proceed in haste in this very sensitive and serious matter,” Jayalalithaa said. She recalled her letters to then PM A B Vajpayee in 2003 and now on May 23, 2013, to him (Manmohan Singh), seeking a reconsideration on the issue.