Mining and power generation at the public sector Neyveli Lignite Corporation [Get Quote] came to a standstill as the strike by the NLC employees protesting against Centre's decision to divest 10 per cent of its equity from the corporation entered the second day on Wednesday.

Barring 50 MW power generation, which would sustain supply to the households and hospitals in the Neyveli township, all other activities had been affected, NLC sources said.

Security had been tightened in the township to avert any untoward incident.

Police said the situation in the mine town was peaceful as the workers remained indoors.

The workers, who had been agitating for the past one week, went on an indefinite strike from 2200 hrs, paralysing the work in one of the major public sector units in the state, supplying power to Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Pondicherry.

The power generation capacity in the NLC is 2,490 MW.

The Tamil Nadu Electricity Board sources said that efforts had already been taken to avoid power cuts due to the strike.