Govt drops idea of paying off BGML liabilities

The state government has dropped the idea of securing 12,000-odd acres of land belonging to the now defunct Bharat Gold Mines Limited (BGML) by paying off its liabilities worth Rs 1,600 crore.

The Centre had agreed to hand over BGML, closed in 2001, to the state, provided it agreed to clear Rs 1,600 crore, which BGML owes to the Ministry of Mines. Karnataka tried to impressing upon the Centre to waive the liability amount.

“This proposal has been dropped because the liabilities are too much,” Commerce Secretary Gaurav Gupta said. The previous Congress-JD(S) coalition was willing to pay off the Rs 1,600 crore liabilities in order to develop an industrial node at KGF. “But we are trying to secure land that does not have any title problem and is lying unused,” Gupta added.

A 3-member committee will be formed to prepare a report on the land the government can look at for industrial activity. “At least 2,000 acres will be available for us where we can have industries not confined to any one sector,” he said.