State ready to pay Rs 1,600 cr to Centre for BGML land

State ready to pay Rs 1,600 cr to Centre for BGML land

The government is willing to pay Rs 1,600 crore, as sought by the Centre, to secure 12,000-odd acres of land belonging to the now defunct Bharat Gold Mines Limited (BGML), Industries Minister K J George informed the Assembly on Monday.

Replying to a question by M Roopakala (Congress), George said the state planned to create an industrial node in Kolar Gold Fields (KGF) along the Bengaluru-Chennai Industrial Corridor using BGML lands.

The Centre is willing to hand over BGML, closed in 2001, to the state, provided it agrees to clear Rs 1,600 crore, which BGML owes to the Ministry of Mines. Karnataka, so far, has been impressing upon the Centre to waive the liability amount.

“We hope the Centre does not insist on paying the liability amount. But we are will to pay as we are keen on developing the industrial node at KGF,” George said.

A committee headed by the Commissioner for Industrial Development and comprising Deputy Commissioner of Kolar and Director (Mines and Geology) has been constituted and given four weeks time to report the status of vacant unencumbered land that will be taken over for development of the industrial node, George said.

Kirloskar to pay Rs 3.7K cr

Replying to N Chandrappa (BJP), George said the Toyota Kirloskar Motor will have to pay Rs 3,733 crore in the next six months as part of a deal signed in 1998, wherein the company was provided deferment of tax payable on sale of goods for starting its manufacturing unit in Bidadi.