Karunanidhi

Chennai, July 4: The DMK did another turnaround on the Neyveli Lignite Corporation (NLC), asking the Centre today to drop the 10 per cent divestment planned.

The Centre had yesterday agreed to reserve a large share of the equity being divested for employees after the DMK, an important UPA partner, made the request on Sunday.

But M. Karunanidhi, who is the DMK president and chief minister of Tamil Nadu where Neyveli is based, faxed a ‘Most Immediate’ message to the Centre today after the workers rejected the equity offer. All four Neyveli unions, including the DMK’s, have decided to go on an indefinite strike from tonight.

The DMK, which had initially opposed the divestment, later changed its stand to ask the Centre to sell the shares to Neyveli employees.

Trade unions and Opposition parties said the equity offer was “illogical and a ploy to deceive the workers”, and allies Left announced picketing in Cuddalore tomorrow.

Disruption of power supply across the south appears imminent after work at the lignite mines and thermal stations stops tonight.

“NLC has been making profits for 30 years and any move to even sell part of the shares to its own staff will ultimately lead to privatisation,” said N. Varadarajan and D. Pandiyan of the CPM and CPI.

“This is a fraudulent drama enacted by Karunanidhi,” MDMK’s Vaiko said.

Jayalalithaa accused Karunanidhi of “duplicity” for changing his stand. If the offer to sell shares to the 18,873 workers went through, to pick up the 10 per cent stake worth Rs 1,100 crore, each employee would have to shell out around Rs 8 lakh, the ADMK chief said. “Can employees of a publicly owned company afford to pay such a price?”

Amid the attacks, Karunanidhi sent a fax to the Prime Minister this afternoon with a copy marked to UPA chairperson Sonia Gandhi.

“The situation in the NLC is becoming serious day by day with the result the Opposition is trying to exploit the situation,” he wrote.

“At any time this may turn into a grave law and order problem.”

It could also lead to a power supply breakdown in the entire south, he said. “Under these unpleasant and undesirable circumstances, I very earnestly request you to kindly withdraw the proposed disinvestment of NLC shares immediately.”