Tamil Nadu Chief Minister C. Joseph Vijay on Thursday urged Prime Minister Narendra Modi to reconsider the Centre’s proposed disinvestment of up to 3 per cent equity in NLC India Limited, arguing that the company is a strategic national asset and that any further dilution of the Government of India’s ownership is against the interests of the State and the country.

In a letter to the Prime Minister, the Chief Minister expressed concern over the Centre’s decision to proceed with an Offer for Sale (OFS) of up to 3 per cent of its paid-up equity in NLC India, comprising a base offer of 2 per cent and an additional 1 per cent green-shoe option.

State raises concerns over dilution of government stake

The Tamil Nadu government strongly opposed, in principle, any further dilution of the Government of India’s equity in NLC India Limited. This issue is of special significance to Tamil Nadu, as NLC India is intrinsically linked to the State through its origin, growth and continuing operations.

In a letter to Prime Minister Narendra Modi, Tamil Nadu Chief Minister C Joseph Vijay requested to reconsider the Centre’s decision of proposed disinvestment of its equity in NLC India Ltd.

NLC India is headquartered at Neyveli, Tamil Nadu, where its principal lignite mining operations—Mine I, Mine IA and Mine II—and its major pit-head lignite-based thermal power stations are located.

NLC India has deep roots in Tamil Nadu

The enterprise has been built over several decades on land acquired through the State machinery, supported by extensive administrative facilitation, infrastructure development, rehabilitation measures and the cooperation of the people of Tamil Nadu. The State, therefore, has a legitimate and enduring stake in the future of this strategically important public sector undertaking, the letter said.

Tamil Nadu government is of the considered view that NLC India is not merely a listed company but a strategic national asset engaged in energy security, mineral development and critical infrastructure.

CM highlights energy security concerns

Any further dilution of the Government of India’s equity, however limited, sets an undesirable precedent for public ownership of such strategically significant enterprises. It also raises concerns that extend beyond financial considerations and touch upon the long-term interests of the State, its people and the nation’s energy security.

Tamil Nadu has consistently maintained that the Government of India’s shareholding in NLC India should not be reduced further, the letter said.

Public sector enterprises of this nature, particularly those established and expanded with the sustained support of a host State over decades, should continue to remain firmly under effective Government ownership and control. In these circumstances, I request the Government of India to reconsider its decision relating to the proposed disinvestment.

“I sincerely hope that the Government of India will give due consideration to the concerns and principled objections of the Government of Tamil Nadu,” the letter said.

Published on June 25, 2026