As the Centres decision to divest 5 per cent stake in Neyveli Lignite Corporation (NLC),was greeted with protests in Tamil Nadu,chief minister of the state,J Jayalalithaa,proposed that the shares be offered to one or more public sector undertakings run by the state government. The Cabinet Committee on Economic Affairs (CCEA) had cleared the disinvestment proposal last week,which,Jayalalithaa said,was a very sensitive and serious matter. I believe that this situation requires an unconventional and pragmatic solution. Therefore,I propose that the 5 per cent Government of Indias shareholding in Neyveli Lignite Corporation be offered to one or more of Government of Tamil Nadus state PSUs,such as the Tamil Nadu Industrial Development Corporation,State Industries Promotion Corporation of Tamil Nadu and Tamil Nadu Industrial Investment Corporation, she said in a letter to Prime Minister Manmohan Singh on Tuesday. These PSUs come within the definition of qualified institutional buyers (QIBs) and would hence be eligible to purchase NLC shares under an institutional placement programme,Jayalalithaa said. This would at once protect the public sector character of NLC and assuage the feelings of workers and people,she added.
