Govt to go ahead with stake sale in NLC

After six years of dilly-dallying over what will certainly turn out to be a political hot potato and will anger its southern ally — the DMK , the government has finally decided to go ahead with disinvestment in Neyveli Lignite Corporation (NLC).

The government intends to sell five per cent of its stake in the state owned miner through an offer for sale. Significantly, this is the UPA's third attempt to divest stake in the PSU.

On Thursday, the department on disinvestment also invited applications from merchant bankers and legal consultants for the proposed stake sale. The finance ministry is expected to approach the Cabinet for approving the proposed disinvestment, an official said.

The Centre currently holds 93.5 per cent stake in NLC. It had earlier sold about 6 per cent stake in the company.

The department of disinvestment has asked interested bankers to submit proposals by September 11, from which a team of three merchant bankers will be chosen.

The UPA has tried to sell 10 per cent stake in the firm in 2006 and 2009 but was stalled by the DMK. Trade unions had also gone on strike opposing the divestment plan.

TKS Elangovan, DMK spokesperson had recently told The Indian Express that the party would continue to oppose any disinvestment in the PSU and would talk to Prime Minister on the issue.

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