Tamil Nadu CM urges Centre to halt NLC India disinvestment, citing strategic importance
Tamil Nadu Chief Minister C. Joseph Vijay has written to Prime Minister Narendra Modi urging the Union government to reconsider its decision to disinvest its equity in NLC India Limited (formerly Neyveli Lignite Corporation). In a letter dated June 25, 2026, Mr. Vijay expressed strong opposition to any further dilution of the Centre's stake in the public sector undertaking.
Describing NLC India as a 'strategic national asset,' the Chief Minister argued that the company is crucial for energy security, mineral development, and critical infrastructure. He warned that reducing the government's shareholding, even to a limited extent, could set a 'undesirable precedent' for public ownership of strategically important enterprises.
Mr. Vijay noted that Tamil Nadu has consistently maintained that the Centre's shareholding in NLC India should not be reduced. He emphasised that the enterprise was built over decades on land acquired through the state machinery, with extensive administrative facilitation, infrastructure development, and rehabilitation measures supported by the people of Tamil Nadu.
“The State, therefore, has a legitimate and enduring stake in the future of this strategically important public sector undertaking,” Mr. Vijay wrote. He requested the Prime Minister to give due consideration to the concerns and principled objections of the Tamil Nadu government.
NLC India, headquartered in Neyveli, Tamil Nadu, operates lignite mines and thermal power plants, contributing significantly to the region's power supply. The Union government currently holds a majority stake in the company, and any disinvestment plan would require parliamentary approval.
The Chief Minister's letter comes amid broader discussions on the Centre's disinvestment strategy for public sector enterprises. While the government has previously argued that disinvestment can raise funds and improve efficiency, critics have raised concerns about loss of control over strategic assets.
