Nevyeli staff opposes divestment, to strike from July 3

Employees of state-run Nevyeli Lignite Corp (NLC) will go on an indefinite strike from July against the government's decision to divest around 5 percent stake in the company, exclusive sources told CNBC-TV18.

Currently the government owns 93.5 percent stake and a 5 percent divestment will help it raise about Rs 500 crore. Unions attached to the company have submitted strike intimation letter to the management as it is mandatory to do so. Amongst other unions, Tamil Nadu Parties Including AIADMK and DMK Oppose Dilution

So far, the firm has had limited success in diluting its stake in the company due to protests by political parties backed unions on many occasions.

It must be noted that Tamil Nadu trade unions have been opposing the he lignite miners divestment. In fact Chief Minister Jayalalithaa has written a letter to Prime Minister Manmohan Singh saying that any proposal to disinvest even a small portion of the Neyveli Lignite shareholding would lead to "considerable labour unrest".

Read This: Govt to divest 5% in Neyveli Lignite for Rs 700cr: Srcs