State to restart negotiations with Centre for BGML land

The defunct gold mines at Kolar Gold Fields. The Centre is willing to hand over Bharat Gold Mines Limited to the state, provided it agrees to clear Rs 1,600 crore, which BGML owes to the Mines Ministry. DH File Photo

In a bid to develop Kolar Gold Fields (KGF) into the state’s second major industrial node, the state government has decided to restart negotiations with the Ministry of Mines with regard to the transfer of ownership of the Bharat Gold Mines Ltd (BGML).

Though the government is keen on the land in the mining area, it does not want to be stuck with BGML’s staggering financial liabilities. The Centre is willing to hand over BGML to the state, provided it agrees to clear Rs 1,600 crore, which BGML owes to the Mines Ministry.

Karnataka, however, wants the Centre to waive the liability amount in toto.

The decision to restart the dialogue was taken during a meeting chaired by Chief Minister H D Kumaraswamy on Tuesday. Kumaraswamy has asked Medium and Large-scale Industries Minister K J George to hold talks with the Centre, so that the 12,500-odd acres belonging to BGML can be used for creating the industrial hub.

Speaking to DH, George said that he would travel to New Delhi next month to start the deliberations. Before that a committee comprising officials from departments including industries, mines, revenue and forest would be constituted to survey the land and submit a preliminary report, he said.

“We are keen on the land, as we can develop another industrial hub, just like the Vasanthanarasapur node in Tumakuru. KGF is ideal for such a project, especially, if we gain ownership of BGML. The Centre, however, is insisting that we pay off the liability amount of Rs 1,600 crore. The state government has got nothing to do with it. We are however willing to pay a reasonable price for the land. We want the Centre to clear BGML’s loan and also take care of the worker issues,” added George.

Liked the story?

  • 2

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry

Comments:

State to restart negotiations with Centre for BGML land

0 comments

Write the first review for this !