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Unions apprehensive about 5% stake sale in NLC: CoalMin to DoD

Last Updated: Sunday, March 31, 2013 - 11:17

New Delhi: The Coal Ministry has conveyed to the Department of Disinvestment (DoD) the apprehensions of Neyveli Lignite's trade unions with regard to the proposed five percent stake sale in the PSU through offer for sale.

The development follows the Coal Ministry receiving a letter from DoD on five percent stake sale in Neyveli Lignite Corporation (NLC).

"The Coal Ministry has forwarded to DoD the apprehensions of trade unions of NLC with regard to the proposed 5 percent stake sale in the PSU," a source close to the development said.

The government had earlier said that the proposed stake sale in NLC is "not necessary" in the fiscal 2012-13 as this has to be completed only before July 2013.

The government, which currently holds 93.5 percent in NLC has been trying for past few years to sell stake in the PSU. However, opposition from trade unions as well as on the political front has stalled its attempts.

Recently, NLC invited bids from global firms to acquire coal assets overseas for providing fuel security to its thermal power plants.

The state-owned firm has proposals for growth in power generation capacity and is expanding its activities not only at Neyveli, but also in other parts of the country.
It has entered into a joint venture with Uttar Pradesh to set up a 1,980 MW power station at Ghatampur.

NLC also has a proposal to establish a power plant with a capacity of 4,000 MW at Sirkali in Tamil Nadu.

It is also planning to bid for ultra mega power projects (UMPP) of 4,000 MW under tariff based competitive bidding.

The shares of the company closed at Rs 65.90 a scrip on BSE on Thursday, a gain of 0.30 percent from the previous close.


First Published: Sunday, March 31, 2013 - 11:17
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