CPM opposes the move to sell 7% shares of NLC India

CHENNAI: CPM state secretary K Balakrishnan on Tuesday demanded the Union Government should immediately withdraw the notification of sale of seven per cent stake in NLC India, which plays a major role in India's electricity demand.

"At present seven per cent shares are announced to be sold at a discounted price of Rs.212 per share as against its present price of Rs.226 per share on the basis of option sale. Only large corporate companies can buy more than the proposed 9 crore shares. The move to sell the shares of Navaratna company which earns a profit of Rs 2000 crore per annum for generating funds of Rs 2000 crore is nothing but an attempt to privatise the company. This indicates that the Modi-led BJP government is aggressively pursuing corporate-backed neoliberal policies, " he said in a statement.

Recalling the past struggles against such disinvestment proposals, he said that all the political parties extended support to the workers struggle against the move to divest 49 per cent shares in 2002, 10 per cent in 2006 and five per cent in 2013.

"Despite the strong opposition from workers and political parties, 20 per cent shares of the NLC have been sold in small quantities over the years, " he said.

NLC which was established in 1956 has a generation capacity of 6000 MW thermal, solar and wind plants, he said, adding that the company employs 10,000 workers permanently and 15,000 workers on contract basis.