Department of Disinvestment, Ministry of Finance, Government of India has requested the Government of Tamil Nadu to nominate senior official for further discussions with SEBI in regard to its proposal to sell the proposed five per cent stake of the Government of India in Neyveli Lignite Corporation (NLC) to the State Undertakings of Tamil Nadu.
The Chief Minister of Tamil Nadu had earlier proposed that the State Undertakings of Tamil Nadu be sold the proposed five per cent stake of the Government of India in NLC through an Institutional Placement Programme. Earlier, the Government of India had proposed to sell the shares through Offer for Sale (OFS) mechanism to the public in order to achieve the minimum public shareholding requirement.
Later on, the matter had been discussed with SEBI. SEBI is of the view that the proposal could get covered within the guidelines on IPP. However, the exact details need to be worked-out that require discussions with the officials of the Government of Tamil Nadu, Ministry of Coal and Department of Disinvestment. In the offer document for IPP, the seller can propose the criteria on the basis of which allocation could be made. This proposal can be used to give preference to any set of Qualified Institutional Buyers including State Undertakings of Tamil Nadu.