Ad Here  
January
February
March
April
May
June
 
 
City of foaming lakes and fire Bifurcation yet to end water wars A neta at it again! Global meets galore Power for all Promise of a productive year Monsoon fury TN to suffer serious loss Enticing pest traps SIPB clears big proposals ‘E’ for enterprise When business flocks to MP... Vedanta to close Lanjigarh refinery Bhubaneswar IIT cries for completion Infrastructure to the FORE Enchanting and enterprising Tamil Nadu Fanciful Rao and tech-savvy Naidu Strike over salary hike Technology has raised the bar... Come to Tamil Nadu where the action is... States - Kerala State of the States Homestays, a budding tourism industry AP in better shape ODISHA Illegal mining of sand Land scams rock AP & TS Leaky old lorries, mini cabs for techies... Kochi Metro Rail Project Waste disposal model Municipal Elections Time to wake up Benevolent businessthan... A blueprint for the future Why the Congress won in Karnataka Doubling production and tripling farmers’ income... Green crimes galore KTR releases Annual Report With agriculture at its heart... Global Investors Meet Post Poned Infra boost to the new capital Development depends on land availability... Winds of change... Oh, la la. Divide & Prosper Deputy Collector Sindhu! More government apps Wouldn’t the Mahatma like clean restrooms in our cities! Bringing magic of Rajasthan alive TN can leverage NLC’s strengths... It indeed is attractive for investments Land acquisition policy is ahead of national policy... All these happened in TN… Thalaivaa Launch of ins vikrant, India’s first indigenous aircraft carrier Industrial corridors to boost economy A year of Telangana Stirring the political cauldron Inter-State boundary Mango Diplomacy MCL has a taste of judicial activism! Nod to cow slaughter bill Flurry of collaborations inked by AP Of development and welfare Tasks for the new government It’s Karnataka chalo for Amit Shah? KNPP with the grid State Forward Info-Park, more space An industrious idea CII to set up tourism bureaus States - Odisha MOUs worth Rs.10.54 lakh crore signed States Roundup Reducing carbon footprint... KCR’s I-day bonanza Bus services hit State under siege Miners asked to pay more Lingayats get a reminder: it’s poll time TN to suffer serious loss Competing for good: Tale of two states A giant push for millets Pioneering education model Hype on Hyperloop
 
TN can leverage NLC’s strengths...
Over the past few weeks, there has been massive resistance to the proposal of the Union Government to divest 5 per cent of the shares of the Central PSU, the Neyveli Lignite Corporation Ltd.

Political parties, particularly the Communists, along with the employees’ unions controlled by different political parties, were joined by the ruling AIADMK to oppose the move. The workers’ unions also struck work at a time when the state has been suffering a severe power shortage.

In the present divisive political climate, the Union Government is not in a position to go for big- ticket divestments. Finance Minister P Chidambaram has been content to go for the divestments funded by government owned financial institutions like LIC. In this process, the higher market value of the shares could be monetised but the basic principle of widening ownership is lost.

NLC, set up in early 1960s, was the first large integrated pithead power project based on lignite deposits. German technology through Rheinbraun was accessed along with sophisticated mining equipment through handsome soft loans through the German Development Bank, KFW at 0.75 per cent interest p.a. with repayment spread over 40 years and an initial moratorium of ten years.

 

NLC helped take power to all TN villages

The first two decades were marked by acute shortage of lignite caused by inadequate capacity of mining equipment. For years, output of lignite was less than 3 million tonnes against the projected 6.5 MT per annum, plunging the corporation to mounting losses. Available lignite was used for feeding the 600 MW power plant equipment supplied by USSR. These sturdy machines, liberally under-rated, proved to be a boon to Tamil Nadu, supplying copious power at low cost. The northern districts of the state, including Chennai metro, benefited immensely. The state extended irrigation facilities taking agriculture to great heights and also helped TN emerge as the first state to take electricity to all villages.

 

The Yegneswaran magic...

Under the dynamic leadership of S Yegneswaran, supported by the then Union Minister of Steel and Mines Mohan Kumaramangalam, NLC’s mining capacity was substantially expanded in the 1970s. NLC pushed behind years of losses. Over the last three decades and more, NLC has been among the most profitable of Public Sector Undertakings.

The state government, under the Dravidian parties, has not been effectively leveraging the strengths of NLC. The expertise and resources available could have been utilised to build large capacity power plants in other parts of the state in quick succession. Many major expansion schemes of NLC did not take off. The most notable one was the large project at Jayamkondan. NTPC, established in the mid 1970s, received all attention and spread its activities all over the country and today accounts for an installed capacity of 41,184 MW, more than sixteen times the capacity of NLC. Alert mining ministers from the north are today working on tapping the resources of NLC for large projects in UP and elsewhere.

Sadly the state, instead of working on similar lines, has been dissipating its energies in relatively non-issues like the five per cent divestment, which can have little impact either on management or control. The state, whose finances are not in great shape, can certainly work on much larger and more valuable issues than on this tiny piece of divestment.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com